The treatment of section 83YC(3) amounts

Other cases where relevant financing arrangements meet the loan condition only: life assurance business and PHI business4

1

This regulation applies if, in a section 83YC(3) period of account—

a

an insurance company carries on both life assurance business and PHI business, and

b

each relevant financing arrangement of the company in force in that period of account meets the loan condition (and not the reinsurance condition).

2

The part of the section 83YC(3) amount referable to life assurance business is—

LABLLABL+PHILmath

where—

  • LABL” is the mean of the opening and closing liabilities of the company’s life assurance business relating to the non-profit fund for the section 83YC(3) period of account, and

  • PHIL” is the mean of the opening and closing liabilities of the company’s PHI business relating to the non-profit fund for that period of account.