Section 323B — Corporation Tax Act 2009: Insurers in financial difficulties: write-down orders

Insurers in financial difficulties: write-down orders 323B 1 Subsection (2) applies if a debtor relationship of a company is modified by a write-down order.

2 The company is not required to bring into account for the purposes of this Part a credit in respect of any change in the carrying value of the liability representing the modified debtor relationship.

3 If as a result of subsection (2) no credit was brought into account in respect of a change in the carrying value of a liability representing a debtor relationship, the company may not bring into account a debit for the purposes of this Part in respect of a change in the carrying value of that liability, to the extent that the change represents a reversal of the change in carrying value to which subsection (2) applied.

4 In this section “ write-down order ” means an order under section 377A of the Financial Services and Markets Act 2000 (court order writing down liabilities of insurer).