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HMRC internal manual

General Insurance Manual

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HM Revenue & Customs
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Technical provisions: periods of account beginning on or after 1 January 2000 and ending before 19 July 2007: General Insurance Reserves (Tax) Regulations: ’the original provisions’

Regulation 3: Rule 2: the original provisions for the earlier period of account

The ‘original provisions for the earlier period of account’ were defined in Rule 2. If the provisions being recalculated were for the year ended 31 December 2000, all earlier years were rolled up into this year. In any other case, the provisions in question were the provisions for liabilities which arose in that period. There needed to be a separate recalculation of the ‘original provisions’ of

  • the period of account ending in 2000 and all earlier years,
  • the period of account ending in 2001,
  • the period of account ending in 2002, and so on.

The amount was subject to an election being made under FA00/S107 (4) in respect of them (GIM6390).

Rule 2 was amended in 2003 as a consequence of the abolition of the ‘ten year rule’ (GIM6200).