Textual Amendments
F1Ss. 444AF-444AL and preceding cross-heading inserted (with effect in accordance with Sch. 11 para. 5(2)-(14) of the amending Act) by Finance Act 2006 (c. 25), Sch. 11 para. 5(1)
(1)For the purposes of section 444AF—
(a)there is a reduction in the amount of the company's unappropriated surplus over the relevant period if CUS is less than (OUS + TSI – TSO);
(b)the amount of that reduction is the amount by which CUS is less than (OUS + TSI – TSO).
(2)In this section—
CUS is the amount of the company's unappropriated surplus at the end of the relevant period,
OUS is the amount of the company's unappropriated surplus at the end of the period of account immediately preceding the relevant period,
TSI is the total amount of any transfer surpluses accruing to the company during the relevant period (see subsections (3) to (7)),
TSO is the total amount of any transfer surpluses accruing to any other company (or companies) during the relevant period on a transfer (or transfers) of life assurance business by the company to that other company (or companies).
(3)For the purposes of this section, a transfer surplus accrues to an insurance company where life assurance business is transferred to the company by a person (“the transferor”).
(4)The transfer surplus accrues to the company on the date of the transfer.
(5)The amount of the transfer surplus is equal to so much of the unappropriated surplus of the transferor at the end of the period of account of the transferor ending immediately before the transfer as is transferred to the company under the transfer.
(6)But if, immediately before the transfer, the transferor carried on the transferred business as mutual business, the amount of the transfer surplus is the aggregate of—
(a)the amount given by subsection (5) above, and
(b)the amount of any added surplus accruing to the company in connection with the transfer.
(7)Subsection (10) of section 444AG applies for the purposes of subsection (6) above as it applies for the purposes of that section.]