GIM6270 - Technical provisions: periods of account beginning on or after 1 January 2000 and ending before 19 July 2007: General Insurance Reserves (Tax) Regulations: the cumulative excess or deficiency
If the difference between the original and recalculated provisions was less than the 5% margin for error, the difference was ignored for the purposes of the calculation.
If it was greater than the margin for error, the margin was deducted. In the example in GIM6260, £4 would be deducted from £20, and the result, £16 was referred to as the 'cumulative excess or deficiency'.
This was the difference between the original provisions and the recalculated provisions over the whole period between the balance sheet of the earlier period of account and the recalculation date.