Section 269ZG | General insurance companies: excluded accounting periods ^F1

(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.^F1F2

(2)An accounting period of a general insurance company is an “excluded accounting period” if conditions A and B are met.^F1

(3)Condition A is that—^F1

(a)the company is subject to insolvency procedures (see section 269ZH) at the end of the accounting period,^F1

(b)immediately before it became subject to insolvency procedures the company—^F1

(i)was unable to pay its debts as they fell due, and^F1

(ii)met the non-viability condition, and^F1

(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.^F1

(4)Condition B is that—^F1

(a)at the end of the accounting period the company meets the non-viability condition, and^F1

(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.^F1

(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.^F1

(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—^F1

(a)the person has permission under Part 4A of the Financial Services and Markets Act 2000 to carry on that activity,^F1

(b)Repealed^F3F1

(c)Repealed^F4F1

(7)The definition in subsection (6) is subject to the following qualifications—^F1

(a)a friendly society within the meaning of Part 3 of FA 2012 is not a general insurance company, and^F1

(b)an insurance special purpose vehicle (as defined in section 139 of FA 2012) is not a general insurance company.^F1

(8)In this section—^F1

“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.