GIM7020 - Equalisation reserves: application of the regulatory rules

The equalisation reserves regulatory rules apply to insurance business in specified classes carried on by an insurer

  • whose head office is in the UK, or
  • whose insurance business in the UK is restricted to reinsurance, or
  • whose head office is not in a European Economic Area (EEA) State.

The rules do not apply to

  • 바카라 사이트˜assessable mutuals바카라 사이트™ - these are mutual associations where the provision of business is limited to members and whose rules call for deficiencies to be made up by members, for instance P&I clubs
  • friendly societies
  • Lloyd바카라 사이트™s syndicates or members
  • companies that conduct no insurance business in the UK or other EEA state even though UK incorporated
  • UK branches of EEA companies, meaning companies resident in another Member State of the EEA which are regulated by that State, unless the business is pure reinsurance.

But there are special tax rules for the last two categories. See GIM7300 and GIM7320.