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EY 16: Policyholder base allowable deductions: non-participation policies
or “Deductible costs for certain life insurance policies”
You could also call this:

“Deductions for life insurers managing policyholder investments”

You can deduct certain expenses from your policyholder base if you’re a life insurer. This applies to a group of policies that are savings products but not profit participation policies. The amount you can deduct is what you’ve credited to your shareholder base in the same year. This credit is for services you’ve provided to policyholders. These services involve managing and looking after funds that will be used to pay future claims on the policies. However, you can only deduct this amount if it’s not already included in another deduction under section EY 16.

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Next up: EY 17: Policyholder base income: profit participation policies

or “Income from profit-sharing insurance policies for policyholders”
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Part E Timing and quantifying rules
Life insurance rules: Non-participation policies

EY 16BPolicyholder base allowable deductions: consideration for investment management services

  1. For an income year and a class of policies that are savings product policies and not profit participation policies, a life insurer has a policyholder base allowable deduction equal to the amount that is—

  2. credited to the shareholder base in the income year as consideration for services provided to policyholders in administering and managing funds intended for use in meeting future policyholder claims under the policies; and
    1. not included in the policyholder base allowable deduction under section EY 16.

      Notes
      • Section EY 16B: inserted (with effect on 1 April 2015), on , by section 83(1) (and see section 83(2) and (3)) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).