ICTA88/S88 allows a deduction for sums paid to the Export
Credits Guarantee Department under arrangements for insuring
overseas investments pursuant to Section 2 of the Export and
Investments Guarantee Act 1991, whether or not they would be
allowable on normal principles.
Under the Export Credits Guarantee Department's scheme,
insurance is offered against risks of expropriation, war and
currency inconvertibility. The scheme applies not only to assets of
overseas branches but also to equity and loan capital in overseas
companies.
