103Interpreting sections 99 to 101 F1... U.K.
(1)This section has effect for the interpretation of sections 99 to 101 F2...
(2)The “total income” of the category of business concerned for any period of account is the amount (if any) by which—
(a)the sum of the amounts specified in subsection (3),
exceeds—
(b)the sum of the amounts specified in subsection (4).
(3)The amounts mentioned in subsection (2)(a) are—
(a)earned premiums, net of reinsurance,
(b)investment income and gains, and
(c)other technical income, net of reinsurance.
(4)The amounts mentioned in subsection (2)(b) are—
(a)acquisition costs,
(b)the change in deferred acquisition costs, and
(c)losses on investments.
(5)The “total relevant expenses” of the category of business concerned for any period of account is the sum of—
(a)the claims incurred, net of reinsurance,
(b)the changes in other technical provisions, net of reinsurance,
(c)the change in the equalisation provision, and
(d)investment management expenses,
unless that sum is a negative amount, in which case the total relevant expenses is to be taken to be nil.
(6)The amounts to be taken into account for the purposes of the paragraphs of subsections (3) to (5) are the amounts taken into account for the purposes of corporation tax.
(7)Expressions used—
(a)in the paragraphs of subsections (3) to (5), and
(b)in the provisions of section B of Part 1 of Schedule 3 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (S.I. 2008/410) which relate to the profit and loss account format (within the meaning of paragraph 1(1) and (2) of that Schedule),
have the same meaning in those paragraphs as they have in those provisions.
Textual Amendments
F1Words in s. 103 heading omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 240(3)
F2Words in s. 103(1) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 240(2)