{
  "url": "https://openlegislation.uk/insurance-companies-reserves-tax-regulations-1996/regulation-9",
  "json_url": "https://openlegislation.uk/insurance-companies-reserves-tax-regulations-1996/regulation-9.json",
  "legislation": "uksi/1996/2991",
  "legislation_title": "The Insurance Companies (Reserves) (Tax) Regulations 1996",
  "legislation_url": "https://openlegislation.uk/insurance-companies-reserves-tax-regulations-1996",
  "path": "regulation/9",
  "kind": "regulation",
  "number": "9",
  "heading": "United Kingdom branches of companies not resident in the United Kingdom which maintain equalisation reserves by virtue of section 34A regulations",
  "text": "(1) If the three conditions prescribed in paragraphs (2) to (4) below are satisfied, section 444BA shall have effect in the case of an equalisation reserve maintained by an insurance company which—\n(a) is not resident in the United Kingdom, and\n(b) carries on business in the United Kingdom through a branch.\n(2) The first condition is that the branch in the United Kingdom has submitted, together with its return under section 11 of the Management Act, a balance sheet (“the branch balance sheet”) in respect of the trade of the branch.\n(3) The second condition is that the branch balance sheet includes as a liability an amount in respect of an equalisation reserve maintained by virtue of section 34A regulations.\n(4) The third condition is that a balance sheet drawn up on the same day as the branch balance sheet for the purposes of the company’s statutory accounts (“the company balance sheet”, either—\n(a) includes as a liability an amount in respect of an equalisation reserve equal to or greater than the amount in respect of the equalisation reserve included in the branch balance sheet, or\n(b) in a case where the amount in respect of the equalisation reserve included in the branch balance sheet exceeds the amount in respect of the equalisation reserve included in the company balance sheet, shows the amount of the excess in the company balance sheet otherwise than as funds belonging to, or available for distribution either immediately or prospectively to, the proprietors of the company.\n(5) For the purpose of calculating the amount of the excess referred to in paragraph (4), any amount in the company balance sheet denominated in a currency other than sterling is to be translated into sterling at the London closing exchange rate on the last day of the accounting period in question.\n(6) Where, after the conditions prescribed in paragraphs (2) to (4) have been satisfied in an earlier accounting period, any of those conditions ceases to be satisfied in a later accounting period, then, for the purposes of the Tax Acts—\n(a) any balance which exists in the reserve at the end of the later accounting period shall be deemed to have been transferred out of the reserve immediately before the end of that accounting period;\n(b) that transfer shall be deemed to be a transfer in respect of that company’s business for that accounting period; and\n(c) the amount of the reserve shall thereupon be deemed to be nil.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [
    {
      "type": "words substituted",
      "affecting": "uksi/2001/3629",
      "affecting_title": "The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001"
    },
    {
      "type": "words substituted",
      "affecting": "uksi/2001/3629",
      "affecting_title": "The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1996/2991/regulation/9",
    "retrieved_at": "2026-10-29T12:31:17.211395+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}