Corporation Tax Act 2010

[F1269ZGGeneral insurance companies: excluded accounting periodsU.K.

This section has no associated Explanatory Notes

(1)Nothing in sections 269ZB to [F2269ZD] 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,

F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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

F1Pt. 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

F2Word in s. 269ZG(1) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 31, 42 (with Sch. 4 paras. 43-46)