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EY 40: Discontinuance profit formula (new policies): when partial reinsurance exists
or “How profit was calculated for discontinued insurance policies with partial reinsurance (no longer applies)”
You could also call this:

“Individual results in discontinuance profit calculations cannot be negative”

This part of the law is about making sure that when you calculate something called a ‘discontinuance profit’, the result for each person can never be less than zero. It’s part of the rules about changing from one tax system to another and dealing with regular payments.

The law used to say more about this, but it was removed on 1 July 2010. This means that these specific rules no longer apply, but there might be other rules that have replaced them.

If you need to know more about how this works now, you might need to look at other parts of the tax laws that came into effect after 1 July 2010.

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Next up: EY 42: How policyholder income is calculated

or “This section about calculating policyholder income is no longer in use”
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Part E Timing and quantifying rules
Life insurance rules: Transitional adjustments and annuities

EY 41Discontinuance profit formulas: individual result may never be negative (Repealed)

    Notes
    • Section EY 41: repealed, on , by section 190(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).