Line4

1 min readBlockingBank of England taxonomy 2.2.0Updated 11 November 2026

Non-life income and expenditure: a total must equal the sum of its parts (IR.05.04, Bank of England rule IR_bv0984)

A blocking check on the non-life income and expenditure template (IR.05.04), in the annual solo (ARS) and annual third-country branch (ARB) returns.

Check your file for this ruleWhat to do if it fails

The rule in plain words

Basic own funds {row R2100, column C3010} must equal Tier 1 {row R2110, column C3010} plus Tier 2 {row R2130, column C3010} plus Tier 3 {row R2150, column C3010} plus Other {row R2160, column C3010}

The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.

What to do if your return fails it

  1. 01Open the table below and find the cells the rule reads.
  2. 02Add up the parts in your return and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark IR.05.04 as reported.
  6. 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

Non-life income and expenditure: non-life income, expenditure and business model analysis: plan year 3 (IR.05.04.01.04)

Rows

  • R2100Basic own funds at end of the period
  • R2110Tier 1
  • R2130Tier 2
  • R2150Tier 3
  • R2160Other

Column

  • C3010All business (including annuities stemming from accepted non-life insurance and reinsurance contracts)

A worked example

With simple numbers.

Illustrative values
Tier 11,200
Tier 2800
Tier 3450
Other300
Together2,750
What the rule then expects

Basic own funds at end of the period must then be 2,750.

2,750Passes
2,850Fails

A file that reports 2,750 passes. One that reports 2,850 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Which returns it applies to

Line4 Check runs it on annual solo (ARS) and annual third-country branch (ARB) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual third-country branch (ARB) and annual solo (ARS) returns, as a blocking check.

The Bank’s own words and formula

The plain words above are the Bank of England’s own, word for word, from its list of validations.

Show the formulaShow

The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.

{t: IR.05.04.01.04, r: R2100, c: C3010, z: Z0001} = {t: IR.05.04.01.04, r: R2110, c: C3010, z: Z0001} + {t: IR.05.04.01.04, r: R2130, c: C3010, z: Z0001} + {t: IR.05.04.01.04, r: R2150, c: C3010, z: Z0001} + {t: IR.05.04.01.04, r: R2160, c: C3010, z: Z0001}

Every Solvency UK rule on IR.05.04

Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.