Section 937F | Ring-fenced scheme losses and relevant scheme profits

(1)Subsection (2) applies if—

(a)a company makes one or more scheme losses in an accounting period in relation to a risk transfer scheme, and

(b)disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic loss in the period as a result of fluctuations in the scheme rate, index or value.

(2)The relevant proportion of each scheme loss made by the company in the accounting period is a “ring-fenced scheme loss”.

(3)For this purpose “ the relevant proportion ” means—

(4)Subsection (5) applies if—

(a)a company makes one or more scheme profits in an accounting period in relation to a risk transfer scheme, and

(b)disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic profit in the period as a result of fluctuations in the scheme rate, index or value.

(5)The relevant proportion of each scheme profit made by the company in the accounting period is a “relevant scheme profit”.

(6)For this purpose “ the relevant proportion ” means—