# The Insurance Contracts (Tax) (Change in Accounting Standards) Regulations 2022, Regulation 4: Trading apportionment of the transitional amount


(1) This regulation applies where, as a result of section 66 of the Finance Act 2012, an insurance company has—
(a) a business consisting of basic life assurance and general annuity business, and
(b) a non-BLAGAB long-term business.
(2) The transitional amount is to be allocated between the two separate businesses in accordance with an acceptable commercial method adopted by the company.
(3) A method is an “acceptable commercial method” if it secures that the transitional amount is allocated to the two separate businesses in a way that fairly represents the contribution made by those businesses, in the period ending immediately before the first accounting period in which accounts are prepared based on IFRS 17, to the accounting profit or loss as adjusted to take into account the transitional amount.
(4) The method adopted for the purposes of this regulation—
(a) must be consistent with the method adopted for the purposes of sections 98 and 115 of the Finance Act 2012 for that period, and
(b) in the case of an overseas life insurance company, must be consistent with the method for that period for attributing assets in accordance with the provision made by or under Chapter 4 of Part 2 of the Corporation Tax Act 2009 to its permanent establishment in the United Kingdom.
(5) In paragraph (4)(b), “overseas life insurance company” has the same meaning as in section 139(1) of the Finance Act 2012.

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Source: https://www.legislation.gov.uk/uksi/2022/1165/regulation/4 (the official version)
Page: https://openlegislation.uk/insurance-contracts-tax-change-in-accounting-standards-regulations-2022/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.