Section 269ZG — Corporation Tax Act 2010: General insurance companies: excluded accounting periods

General insurance companies: excluded accounting periods 269ZG 1 Nothing in sections 269ZB to 269ZD 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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.