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HMRC internal manual

General Insurance Manual

HM Revenue & Customs
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Technical provisions: background

The paragraphs below explain the ‘unearned premium provision’ (UPP) and the ‘unexpired risks provision’ (URP). Strictly, the unearned premium provision is a deferred income item rather than a true provision. Remember that the most significant items within technical provisions are the provisions against claims outstanding and claims incurred but not yet reported - see GIM2170 for general accounting background. They also give guidance on the tax treatment of technical provisions according to established principles.

See GIM6145 to GIM6440 regarding the special rules of FA00/S107 which applied for periods from 1 January 2000 and periods ending before 19 July 2007, and GIM6500+ for the rules which (broadly) apply for periods from 1 January 2009.