[F1 Part 21A U.K. Risk transfer schemes

Textual Amendments

F1 Pt. 21A inserted (with effect in accordance with Sch. 16 para. 5 of the amending Act) by Finance Act 2010 (c. 13), Sch. 16 para. 3

A company's losses pool and profits pool U.K.

937I A company's losses pool and profits pool U.K.

(1) The amount of a company's losses pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—

where—

A is—

(a)

the amount of the pool as at the beginning of the previous accounting period, or

(b)

if the risk transfer scheme began in the current accounting period, nil,

B is the total amount, if any, of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section 937G(2) or (3), are not brought into account in that period, and

C is the total amount (if any) that, as a result of the application of section 937H(2) or (3), is brought into account in the previous accounting period in relation to the scheme by the company.

(2) The amount of a company's profits pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—

where—

A is—

(a)

the amount of the pool as at the beginning of the previous accounting period, or

(b)

if the risk transfer scheme began in the current accounting period, nil,

B is—

(a)

the total of any relevant scheme profits made in the previous accounting period in relation to the scheme by the company, less

(b)

the total amount (if any) that, as a result of the application of section 937H(2) or (3), is brought into account in that accounting period in relation to the scheme by the company, and

C is the total amount (if any) of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section 937G(3) or (5), are brought into account in that period.]