GIM7020 - Equalisation reserves: who the rules apply to
The Equalisation Reserves 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 an EEA state
The regulations do not apply to
- assessable mutuals - P&I clubs, for example;
- friendly societies; Lloyd’s syndicates or members;
- companies incorporated in the UK but which conduct no insurance business in the UK or other EEA state; and
- UK branches of EEA companies (other than pure reinsurers) - that is companies resident in another member state of the EEA which are regulated by the home state.
There are special tax rules for the last two categories GIM7300 and GIM7320.
