Taxation (International and Other Provisions) Act 2010 section 103

Interpreting sections 99 to 101

Section 103 defines the key terms "total income" and "total relevant expenses" used in sections 99 to 101 for the purpose of allocating expenses in insurance company calculations for double taxation relief.

• "Total income" for a category of insurance business is the excess of earned premiums, investment income/gains, and other technical income (all net of reinsurance) over acquisition costs, the change in deferred acquisition costs, and investment losses.
• "Total relevant expenses" is the sum of claims incurred (net of reinsurance), changes in other technical provisions (net of reinsurance), the change in the equalisation provision, and investment management expenses — but if this sum is negative, it is treated as nil.
• All amounts used in these calculations are those taken into account for corporation tax purposes.
• The terminology used in the definitions follows the same meanings as in the profit and loss account format set out in Schedule 3 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.