GIM4060 - Taxation of general insurance: annual accounting: accounting for premium income

As far as premiums are concerned, if they are brought into account as required by Schedule 9A to the Companies Act 1985 and paragraphs 84 to 91 of the ABI SORP (see GIM2140), no major tax issues should arise.

Premiums are apportioned over the period of risk (usually 12 months starting with the effecting of the policy) between periods of account by the setting up of an “Unearned Premium Provision” or UPP (previously referred to as an unearned premium reserve – UPR).