# Finance (No. 2) Act 2023, Section 32: Insurers in difficulties: write-down orders for corporation tax purposes

Extent: E+W+S+N.I.

(1) In Part 3 of CTA 2009 (trading income), after section 130 insert—
“Insurers in financial difficulties: write-down orders
130A (1) A receipt or expense that is attributable to the operation of a write-down order, or to a write-down order ceasing to have effect, is not brought into account in calculating the profits of a trade.
(2) In this section “write-down order” means an order under section 377A of the Financial Services and Markets Act 2000 (court order writing down liabilities of insurer).”
(2) Part 5 of CTA 2009 (loan relationships) is amended as follows.
(3) After section 323A insert—
“Insurers in financial difficulties: write-down orders
323B (1) Subsection (2) applies if a debtor relationship of a company is modified by a write-down order.
(2) The company is not required to bring into account for the purposes of this Part a credit in respect of any change in the carrying value of the liability representing the modified debtor relationship.
(3) If as a result of subsection (2) no credit was brought into account in respect of a change in the carrying value of a liability representing a debtor relationship, the company may not bring into account a debit for the purposes of this Part in respect of a change in the carrying value of that liability, to the extent that the change represents a reversal of the change in carrying value to which subsection (2) applied.
(4) In this section “write-down order” means an order under section 377A of the Financial Services and Markets Act 2000 (court order writing down liabilities of insurer).”
(4) In section 465B (“tax-adjusted carrying value”), in subsection (9), after paragraph (d) insert—
“(da) section 323B (insurers in financial difficulties: write-down orders),”.

---
Source: https://www.legislation.gov.uk/ukpga/2023/30/section/32 (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/section-32
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.