The Insurance Companies (Reserves) (Tax) Regulations 1996

Accounting on a non-annual basis

Non-annual accounts: tax returns prepared on an annual basis

5.—(1) This regulation applies in any case where an insurance company—

(a) for the purpose of preparing the documents it is required to prepare for the purposes of section 17 of the 1982 Act, has applied a paragraph 52 method of accounting on a non-annual basis for any return period in respect of the whole or any part of its business, and

(b) for a related accounting period has submitted to an officer of the Board a return under section 11 of the Management Act(1) which is based on accounts prepared on an annual basis in respect of the whole of its business for that accounting period.

(2) The operation of paragraphs (a) and (b) of subsection (2) of section 444BA shall be modified so as to provide that, for the purposes of the Tax Acts, the amounts which, in accordance with section 34A regulations, are transferred into or out of the equalisation reserve in respect of the company’s business for the accounting period in question shall be the amounts which would have been transferred into or out of the equalisation reserve if the company had been required, by virtue of section 34A regulations, to maintain an equalisation reserve by reference to accounts prepared on an accident year basis.

(3) For the purposes of paragraph (1) (b) accounts are prepared on an annual basis where they are prepared otherwise than in accordance with a paragraph 52 method of accounting on a non-annual basis.

(4) For the purposes of paragraph (2) accounts are prepared on an accident year basis where the accounts and statements required to be deposited with the Secretary of State pursuant to section 22 of the 1982 Act are prepared using Forms 21, 22 and 23 prescribed by the Insurance Companies (Accounts and Statements) Regulations 1996(2).

(1)

Section 11 was amended by section 82 of the Finance (No. 2) Act 1987 (c. 51) and section 91 of, and Part V of Schedule 19 to, the Finance Act 1990 (c. 29) and, prospectively, by section 181 of, and Part V(23) of Schedule 26 to, the Finance Act 1994 (c. 9).

(2)

S.I. 1996/943.