Corporation Tax Act 2010 section 269ZP

Interpretation of sections 269ZJ to 269ZO

Section 269ZP provides a glossary of defined terms used in the provisions dealing with the exclusion of shock losses from the corporate loss restriction rules (sections 269ZJ to 269ZO).

• The section defines "solvency capital requirement" for insurance, reinsurance and third-country insurance undertakings by reference to the Solvency 2 Directive, with third-country undertakings treated as if they were standard insurance undertakings for this purpose.
• Key insurance-sector terms such as "basic own funds", "ring-fenced fund", "notional solvency capital requirement" and "restricted own-fund item" take their meanings from the Solvency 2 Directive and the associated EU Delegated Regulation 2015/35.
• Regulatory terms including "actuarial function", "chief actuary", "PRA-authorised person" and "with-profits fund" are defined by reference to the PRA Rulebook, while "with-profits actuary" is defined by the FCA Handbook.
• "Insurance company" is broadly defined to cover any company that is an insurance undertaking, a reinsurance undertaking or a third-country insurance undertaking, and a "relevant ring-fenced fund" is specifically a ring-fenced fund that is also a with-profits fund.