Corporation Tax Act 2010

[F1 269ZG General insurance companies: excluded accounting periods U.K.

(1) Nothing in sections 269ZB to 269ZE has effect for determining the taxable total profits of a general insurance company for an excluded accounting period.

(2) An accounting period of a general insurance company is an “excluded accounting period” if conditions A and B are met.

(3) Condition A is that—

(a) the company is subject to insolvency procedures (see section 269ZH) at the end of the accounting period,

(b) immediately before it became subject to insolvency procedures the company—

(i) was unable to pay its debts as they fell due, and

(ii) met the non-viability condition, and

(c) the company's liabilities in respect of qualifying latent claims (see section 269ZI) were the main factor contributing to the company's meeting the non-viability condition at that time.

(4) Condition B is that—

(a) at the end of the accounting period the company meets the non-viability condition, and

(b) the company's liabilities in respect of qualifying latent claims are the main factor contributing to the company's meeting that condition at that time.

(5) At any time, a general insurance company meets the non-viability condition if there is no realistic prospect that it will subsequently write any new insurance business.

(6) For the purposes of this section a person who carries on the activity of effecting or carrying out contracts of general insurance is a “general insurance company” if—

(a) the person has permission under Part 4A of the Financial Services and Markets Act 2000 to carry on that activity,

(b) the person is of the kind mentioned in paragraph 5(d) or (da) of Schedule 3 to the Financial Services and Markets Act 2000 (EEA passport rights) and carries on that activity in the United Kingdom through a permanent establishment there, or

(c) the person qualifies for authorisation under Schedule 4 to the Financial Services and Markets Act 2000 (Treaty rights) and carries on that activity in the United Kingdom through a permanent establishment there.

(7) The definition in subsection (6) is subject to the following qualifications—

(a) a friendly society within the meaning of Part 3 of FA 2012 is not a general insurance company, and

(b) an insurance special purpose vehicle (as defined in section 139 of FA 2012) is not a general insurance company.

(8) In this section—

• “contract of general insurance” means a contract of a type described in Part 1 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);

• “liability” includes a contingent or prospective liability.]

Textual Amendments

F1 Pt. 7ZA inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 16