7. Deduction in respect of financial guarantee insurance

Subject to regulation 8, there shall be allowed to an approved general insurer a deduction for the amounts transferred by him during the basis period for any year of assessment to his special reserve in respect of a qualifying business dealing with the offshore risk described in regulation 3(g), if —

the transfer is made in accordance with the Insurance (Financial Guarantee Insurance) Regulations (Cap. 142, Rg 6); and

the amounts are not withdrawn from the special reserves.