GIM6520 - Technical provisions: Schedule 11 FA2007: definitions

FA07/SCH11/PARA3 defines the terms used in the legislation. These are broadly similar to those formerly found in FA00/S107, but there are some differences, particularly in relation to Lloyd’s.

General insurer is defined for the purposes of the technical provisions that are restricted by the rules (FA07/SCH11/PARA1, see GIM6530) as

  • a company within the charge to corporation tax
  • a controlled foreign company
  • a Lloyd’s syndicate (this is a departure from FA00/S107 which operated at member level)

that carries on general business as defined in Part 1 of Schedule 1 to the Financial Services and Markets Act 2000. The first category includes permanent establishments of firms from the EEA and other countries that were separately categorised under FA00/S107 (see GIM6160).

The definition of general insurer is refined for the purposes of enforcing the rules (FA07/SCH11/PARA2, see GIM6540), so that it refers to

  • a company within the charge to corporation tax
  • a company which has an interest in a controlled foreign company
  • the managing agent of a Lloyd’s syndicate. More information is in Chapter 3 of the Lloyd’s Manual (LLM).

These refinements are to enable the rules to be enforced in relation to a UK resident person and do not change the scope of the rules.

Period of Account, except for Lloyd’s syndicates, means a period for which an account is made up.

Technical provisions, except for Lloyd’s syndicates, means provisions as defined in Schedule 3 to the accounting Regulations SI2008/410, namely those for claims outstanding, unearned premiums (UPP) and unexpired risks (URP).