Regulation 3 Recalculation of technical provisions for the purposes of section 107

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg 3 am by General Insurance Reserves (Tax) 2005 regs 2, 3
reg 3 rev in pt by General Insurance Reserves (Tax) 2003 regs 3, 5(1), (3)(a)
reg 3 am by General Insurance Reserves (Tax) 2003 regs 3, 5(1), (3)(b)–(f), (g)(ii), (h)–(k)
reg 3 am & rev in pt by General Insurance Reserves (Tax) 2003 regs 3, 5(1), (3)(g)(i)
reg 3 defn(s) added by General Insurance Reserves (Tax) 2003 regs 3, 5(1), (2)

(1)

This regulation and regulation 4 apply for determining for the purposes of section 107 whether an amount representing the whole or part of the technical provisions made and taken into account in computing for tax purposes the profits of a general insurer other than an underwriting member (see regulation 7(2)) for a period of account was excessive or insufficient, and the amount of the excess or deficiency.

(2)

In the following provisions of this regulation and regulation 4—

“the balance sheet date” means the end of the earlier period of account (as the latter expression is defined in paragraph (3));
“the recalculation date” means the end of the later period of account (as the latter expression is defined in paragraph (3)); and
“taken into account” means taken into account in computing for tax purposes the profits of the general insurer’s trade for the relevant period of account;

and expressions which are used in Schedule 9A have the same meanings as in that Schedule.

(3)

As at the end of each period of account which begins on or after 1st January 2001 (and the period which is relevant to the calculation in question is referred to as “the later period of account”), recalculate the provisions for claims outstanding made and taken into account for each earlier period of account which—

(a)

began on or after 1st January 2000, and

(b)

ended not more than 10 years before the recalculation date,

separately for each such period (and the earlier period which is relevant to the calculation in question is referred to as “the earlier period of account”). The recalculation shall be made in accordance with the following rules.