F1Part 21ARisk transfer schemes

A company's losses pool and profits pool

937IA company's losses pool and profits pool

(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—

A+B–C

where—

A is—

  1. (a)

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

  2. (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—

A+B–C

where—

A is—

  1. (a)

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

  2. (b)

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

B is—

  1. (a)

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

  2. (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.