# The General Insurance Reserves (Tax) Regulations 2001, Regulation 4.1: Rule 4


This Rule applies where, on or after the date on which these Regulations come into force—
(a) a general insurer which is a company (“the general insurer”) enters into a qualifying contract, other than a reinsurance to close contract, with another person (“the reinsurer”), and
(b) (i) the general insurer and the reinsurer are connected companies, or
(ii) in any other case, the qualifying contract is or forms part of a transaction or series of transactions, as a result of which a company connected with the general insurer (“the connected company”) directly or indirectly agrees to meet a liability of the general insurer, or any further liability representing that liability, through any number of such agreements (“the replacement agreements”), and
(c) in a case falling within paragraph (b)(i) above the reinsurer, or in a case falling within paragraph (b)(ii) above the connected company, is neither—
(i) within the charge to corporation tax in respect of income arising from the qualifying contract, or from the relevant replacement agreement, as the case may be, if or assuming that there were such income (within the meaning in section 832(1)), nor
(ii) a controlled foreign company, in relation to which paragraph (a) of section 748(1) applies to, or an apportionment under section 747(3) falls to be made regarding, the accounting period in which the qualifying contract is made,
and applies to the extent that the qualifying contract reinsures liabilities represented in technical provisions which the general insurer has previously taken into account.

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Source: https://www.legislation.gov.uk/uksi/2001/1757/regulation/4.1 (the official version)
Page: https://openlegislation.uk/general-insurance-reserves-tax-regulations-2001/regulation-4.1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.