Policyholders Protection Act 1975

The rate of the levy

2 (1) Subject to sub-paragraph (2) below, the rate of a levy imposed under section 19 above in respect of any company shall be—

(a) where the long term business expenditure incurred by the Board in relation to that company is less than the total amount of the income liable to levy, a percentage equal to the percentage of that amount which that expenditure represents ; and

(b) in any other case, one hundred per cent.

(2) Where a levy is imposed under section 19 above in respect of any company before the exact amount of the long term business expenditure of the Board in relation to that company is ascertained sub-paragraph (1)(a) above shall apply as if the Board's estimate of that expenditure were the expenditure actually incurred.

(3) In sub-paragraph (1) above "the total amount of the income liable to levy " means, in relation to any company, the total amount of the income of all the persons who appear to the Board to be accountable intermediaries of that company which appears to the Board to be income liable to levy.