1(1)This paragraph applies if a general insurer makes any technical provisions for a period of account.E+W+S+N.I.
(2)The amount of the technical provisions stated in the accounts for that period is to be taken into account in the calculation for tax purposes of the profits of the general insurer's trade for that period unless an officer of Revenue and Customs considers that that amount exceeds the appropriate amount.
(3)In that case—
(a)the excess is not to be taken into account in that calculation, and
(b)the profits of the general insurer's trade for the next period of account are to be adjusted accordingly for tax purposes.
(4)“The appropriate amount” means such amount as is determined in accordance with regulations made by the Commissioners for Her Majesty's Revenue and Customs to be the appropriate amount to be taken into account in that calculation.
(5)Any such determination must be made by reference to the time at which the technical provisions are made.