Finance Act 1994

230 Interpretation and commencement. U.K.

(1) In this Chapter, unless the context otherwise requires—

• “the 1993 Act” means the M1 Finance Act 1993;

• “ancillary trust fund”, in relation to a corporate member, does not include a [F1 premium] trust fund but, subject to that, means any trust fund required or authorised by the rules of Lloyd’s, or required by a members’ agent or regulating trustee of the corporate member;

• “closing year”—

  (a)

  in relation to an underwriting year, means the underwriting year next but one following that year; and

  (b)

  in relation to a syndicate, means the closing year of the underwriting year for which it was formed;

• “corporate member” means a body corporate which is a member of Lloyd’s and is or has been an underwriting member;

• “inspector” includes any officer of the Board;

• “the Management Act” means the M2 Taxes Management Act 1970;

• “managing agent”, in relation to a syndicate and an underwriting year, means—

  (a)

  the person registered as a managing agent at Lloyd’s who was acting as such an agent for the syndicate at the end of that year, or

  (b)

  such other person as may be determined in accordance with regulations made by the Board;

• “member” means a member of Lloyd’s who is or has been an underwriting member;

• “members’ agent”, in relation to a corporate member, means a person registered as a members’ agent at Lloyd’s who has been appointed by the corporate member to act as its members’ agent in respect of all or any part of its underwriting business;

• [F2 “premium trust fund” means a trust fund into which premiums receivable by members are paid in compliance with a trust deed under [F3 section 17.7 of the Lloyd’s Sourcebook] made by the Financial Services Authority under the Financial Services and Markets Act 2000;]

• “prescribed” means prescribed by regulations made by the Board;

• “profits” includes gains;

• “regulating trustee”, in relation to a corporate member, means a person designated as such by the terms of any trust deed by which a premiums trust fund of the corporate member is constituted;

• “stop-loss insurance” means any insurance taken out by a corporate member against losses in its underwriting business [F4 , except insurance taken out by entering a quota share contract (within the meaning of section 225 above)];

• “syndicate” means a syndicate of underwriting members of Lloyd’s formed for an underwriting year;

• “underwriting business”, in relation to a corporate member, means its underwriting business as a member of Lloyd’s;

• “underwriting year” means the calendar year.

(2) For the purposes of this Chapter, unless the contrary intention appears—

(a) the profits or losses of a corporate member’s underwriting business include profits or losses arising to it—

(i) from assets forming part of a [F5 premium] trust fund or an ancillary trust fund; or

(ii) from assets employed by it in, or in connection with, its underwriting business; and

(b) any charge made on a corporate member by the managing agent of a syndicate of which it is a member, and any expense incurred on its behalf by the managing agent of such a syndicate, shall be treated as expenses arising directly from its membership of that syndicate.

(3) Subject to any provision to the contrary, the provisions of this Chapter have effect for accounting periods ending on or after 1st January 1994 or, as the case may require, for the underwriting year 1994 and subsequent underwriting years.

Textual Amendments

F1 S. 230(1): Word in the definition of “ancillary trust fund” substituted (1.12.2001) by S.I. 2001/3629, art. 87(f)

F2 S. 230(1): Definition of “premium trust fund” substituted (1.12.2001) by S.I. 2001/3629, art. 85

F3 Words in s. 230(1) substituted (1.7.2005) by The Lloyds Sourcebook (Amendment of the Finance Act 1993 and the Finance Act 1994) Order 2005 (S.I. 2005/1538), arts. 1, 3

F4 Words in s. 230(1) inserted (with effect as mentioned in s. 86(2) of the amending Act) by Finance Act 2002 (c. 23), s. 86, Sch. 32 para. 10

F5 Word in s. 230(2)(a)(i) substituted (1.12.2001) by S.I. 2001/3629, art. 87(f)

Modifications etc. (not altering text)

C1 S. 230 applied (1.5.1995) by 1995 c. 4, s. 127(16)(b)

S. 230 applied (29.4.1996 with effect as mentioned in s. 105 of the amending Act) by 1996 c. 8, s. 99, Sch. 11 para. 7(2) (with Pt. IV Chapter II (ss. 80-105))

Marginal Citations

M1 1993 c.34.

M2 1970 c.9.