Chargeable equity and liabilities: excluded equity and liabilities: relevant insurance liabilities
Paragraph 33 of Schedule 19
Relevant insurance liabilities in respect of banking groups’ regulated insurance business are excluded from the bank levy.
The insurance liabilities covered by the exemption are those of a regulated insurer* who is carrying on an insurance business and the liabilities:
- are to policyholders under contracts of long-term or general insurance whether written in the UK or overseas (contracts as defined by Parts 1 & 2 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI2001/544))
- represent unallocated surpluses - those on valuation shown in a return deposited with the FSA under s9.6 of the Prudential Sourcebook for Insurers made by the FSA under FISMA
- represent participants’ interests in collective investment schemes and open ended investment companies (as defined in Part 17 of FISMA - sections 235 and 237). The liability here includes where it would be a liability of the insurer if the insurer prepared consolidated accounts.
*A ‘regulated insurer’ is an entity which is authorised by law to carry on insurance business or an entity which is a member of a body or organisation which is so authorised.