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

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

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

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

(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).

(3)The conditions are that—

(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,

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

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

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

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

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

(5)If—

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

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

the specified loss is a “shock loss”.

(6)If—

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

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

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—

(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.