Line4

1 min readWarningBank of England taxonomy 2.2.0Updated 11 November 2026

With-profits value of bonus: {r0090, c0050} (shareholder transfer accruing) = {r0060, c0040} * {r0080, c0050} / (1 - {r0080, c0050}) (IR.12.05, Bank of England rule IR_bv1006)

A warning on the with-profits value of bonus template (IR.12.05), in the annual solo (ARS) and annual third-country branch (ARB) returns.

Check your file for this rule

The rule in plain words

{r0090, c0050} (shareholder transfer accruing) = {r0060, c0040} * {r0080, c0050} / (1 - {r0080, c0050})

This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it. It runs only when your filing indicators mark IR.12.05 as reported.

The cells it reads

With-profits value of bonus (IR.12.05.01.01)

Rows

  • R0060Total distribution of profits as discretionary benefits to policyholders
  • R0080Shareholder proportion
  • R0090Shareholder transfer accruing during the financial year

Columns

  • C0040Value of bonus (shareholder participation)
  • C0050Total

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 solo (ARS) and annual third-country branch (ARB) returns, as a warning.

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.12.05.01.01, r: R0090, c: C0050, z: Z0001} * (1 - {t: IR.12.05.01.01, r: R0080, c: C0050, z: Z0001}) = {t: IR.12.05.01.01, r: R0060, c: C0040, z: Z0001} * {t: IR.12.05.01.01, r: R0080, c: C0050, z: Z0001}

Every Solvency UK rule on IR.12.05

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.