(1) The provisions of this section have effect for the purposes of this Part as it applies in relation to an authorised insurance company carrying on long-term business, other than -
(a) a person to whom section 833A applies; or
(b) an insurance special purpose vehicle.
(2) An amount included in the relevant part of the company's balance sheet that -
(a) represents a surplus in the fund or funds maintained by it in respect of its long-term business, and
(b) has not been allocated to policy holders or, as the case may be, carried forward unappropriated in accordance with asset identification rules made under Part 9A of the Financial Services and Markets Act 2000 (c. 8),
is treated as a realised profit.
(3) For the purposes of subsection (2) -
(a) the relevant part of the balance sheet is that part of the balance sheet that represents accumulated profit or loss;
(b) a surplus in the fund or funds maintained by the company in respect of its long-term business means an excess of the assets
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