Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

General Insurance Manual

From
HM Revenue & Customs
Updated
, see all updates

Equalisation Reserves: cessations and transfers of business

A transfer out must be made which reduces the equalisation reserve to nil where the net written premiums in the financial year (see GIM7210) are below the de minimis level, and

  • net written premiums for business for which equalisation reserves are a requirement fell below the de minimis levels in two out of four of the previous four years; or
  • if the company has (at the end of the year) carried on business for less than five years, the average net premiums for those years (including the latest year) falls below the de minimis levels.