Section 269ZK | Meaning of “shock loss”: requirement to make a claim ^F1

(1)If the conditions in subsection (3) are met, an insurance company may make a claim in respect of—^F1

(a)a loss or other amount (the “specified loss”), and^F1

(b)a period of 12 months (“the specified period”) which is a solvency shock period (see section 269ZM).^F1

(2)A claim may specify more than one 12 month period under subsection (1)(b) (but periods specified by an insurance company under this section may not overlap with one another).^F1

(3)The conditions are that—^F1

(a)the accounting period (for corporation tax purposes) in which the specified loss arises (“the loss-making period”) begins on or after 1 April 2017,^F1

(b)the specified loss is, or is capable of being, carried forward to a subsequent accounting period, and^F1

(c)the loss-making period and the specified period have one or more days in common.^F1

(4)A claim under this section must be made within—^F1

(a)the period of two years after the end of the loss-making period, or^F1

(b)such further period as an officer of Revenue and Customs allows.^F1

(5)If—^F1

(a)a claim is made under this section, and^F1

(b)the whole of the loss-making period is, or falls within, the specified period,^F1

the specified loss is a “shock loss”.

(6)If—^F1

(a)a claim is made under this section, and^F1

(b)the loss-making period falls partly, but not wholly, in the specified period,^F1

the specified loss is a “shock loss” so far as it is attributable to the specified period.

(7)For the purposes of subsection (6) the specified loss is “attributable to” the specified period in the proportion—^F1

(8)If the method in subsection (7) would produce a result that is unjust or unreasonable, the apportionment of the specified loss for the purposes of subsection (6) is to be made on a just and reasonable basis.^F1