Adjustment of original provisions

Background

This schedule relates to the adjustments required by Rule 8A of regulation 3 of the General Insurance Reserves (Tax) Regulations 2001 (SI 2001 / 1757). These regulations are concerned with the calculations and adjustments required by FA 2000 s 107 regarding excessive or insufficient technical provisions in a general insurance company.

Rule 8A relates to the adjustment of a calculated deficiency in a provision where an election has been made under FA 2000 s 107(4) and a loss etc has been set against the profits of the general insurance trade for the period for which the election was made.

Rule 8A(3)(a) limits the adjustment to the deficiency, so that, broadly, the sum of the amounts added to the original provisions for all 'earlier' periods is not to exceed the sum of the losses etc set off. The purpose of this schedule is to record the adjustments made to the deficiency and the losses etc set off, in order to help you to check that this limit is not exceeded.

5 To the top

Developing the schedule

This schedule is available as part of the General Insurance module and may be developed from the Utilisation of provisions - summary schedule. Multiple copies of the schedule may be developed.

5 To the top

Completing the schedule

The schedule is developed for a particular 'later' period. There are three sections to complete on the schedule -

Elections made under FA 2000 s 107(4), analysed to show the 'earlier' period provisions in respect of which the elections were made;
Losses etc set against general insurance profits of the period(s) for which an election was made;
Adjustments made to original provisions, analysed to show the 'earlier' period provisions in respect of which the adjustments were made.

An error message is given if the total of the adjustments entered on the schedule exceeds the total shown for losses etc set against general insurance profits.

If desired, the adjustments entered on this schedule for an 'earlier' period can be linked manually to the Utilisation of provisions - summary schedule for the relevant 'earlier' period

5 To the top

Adjustment of original provisions

Background

Developing the schedule

Completing the schedule

Standard sub-schedules

Carry forward

Related errors