The General Insurers’ Technical Provisions (Appropriate Amount) (Tax) Regulations 2009
The amount of technical provisions stated in the accounts of a general insurer (which includes members of Lloyd’s underwriting syndicates carrying on general insurance business) for a period of account is taken into account in the calculation for tax purposes of the profits of the general insurer’s trade for that period unless that amount exceeds the appropriate amount. Where the amount stated in the accounts exceeds the appropriate amount the excess is not taken into account when computing the profits: see paragraphs 1(2) and (3) of Schedule 11 to the Finance Act 2007. These Regulations make provision specifying how the appropriate amount of a general insurer’s technical provisions is to be determined for this purpose.