Regulation 10

Subject to paragraph (2), the amount of trading receipts under regulations 4(2) and (5) and 9(1)(b) and (2) of an approved general insurer shall be adjusted in accordance with the formula whereAis the aggregate amount of the relieved transfers; Bis the previous tax rate applicable to the insurer in the year of assessment relating to the basis period in which the relieved transfer was made; and Cis the current tax rate applicable to the insurer in the year of assessment relating to the basis period in which the amount of relieved transfers is to be deemed as a trading receipt.

Where the current tax rate referred to in paragraph (1) of an approved general insurer is zero, the tax payable on the trading receipts by the insurer shall be the amount of relieved transfers multiplied by the previous tax rate as defined in that paragraph.

For the purpose of determining the amount of relieved transfers to be deemed as trading receipts, any amount transferred to the special reserves first shall be deemed to have been transferred from the special reserves first.