175Special reserve funds
(1)If arrangements are made by the Council of Lloyd’s which—
(a)enable such a special reserve fund as is referred to in Part I of Schedule 20 to this Act to be set up in relation to each member; and
(b)comply with the requirements of that Part and are approved by the Board,
the provisions of that Part relating to taxation shall have effect in relation to any special reserve fund of a member set up under the arrangements.
(2)The arrangements may from time to time be varied with the consent of the Board.
(3)If, after giving notice of their intention to do so to the Council of Lloyd's, the Board cancel the approval which they have given with respect to the arrangements, paragraph 3 of Schedule 20 to this Act shall not apply, in the case of any member, to any year of assessment after the year of assessment in which the approval is cancelled.
(4)The provisions of Part II of Schedule 20 to this Act shall have effect as respects the winding up of any special reserve fund which—
(a)was set up under the arrangements mentioned in section 452(1) of the Taxes Act 1988; and
(b)belongs to a member for whom a special reserve fund may be set up under the arrangements mentioned in subsection (1) above.