The Lloyd’s Underwriters (Tax) Regulations 1995

Cessation of individual member’s underwriting business by reason of death on or after 6th April 1994 – date of cessation of business

10.—(1) For the purposes of the Income Tax Acts, where a member ceases to carry on his underwriting business by reason of his death, the business shall, in the cases specified in paragraphs (2) to (5) below, be treated as continuing until the date specified in those paragraphs in relation to the appropriate case.

(2) In any case where a letter is issued by the Membership Department of Lloyd’s to the member’s agent, or his personal representatives or assigns, inviting an application for the repayment of the member’s deposit, the member’s business shall be treated as continuing until the date which is 180 days after the date of issue of the letter.

(3) In any case where the member’s deposit at Lloyd’s is paid over to a person other than the member’s personal representatives or assigns, the member’s business shall be treated as continuing until his deposit is so paid over or, where paragraph (2) above applies and the date specified in that paragraph occurs earlier, that earlier date.

(4) In any case where the member’s personal representatives are, or another person is, released from any arrangement entered into by the member or that person in order to satisfy the requirement on the part of the member to provide a deposit at Lloyd's, the member’s business shall, except in a case to which paragraph (5) below applies, be treated as continuing until the date on which the release occurs.

(5) In any case where the member’s deposit at Lloyd’s is extinguished or released before the last open year of account of any syndicate of which he was a member is closed, the member’s business shall be treated as continuing until either—

(a) the end of the year of assessment next following the year of assessment which corresponds to the underwriting year in which the last open year of account of any syndicate of which he was a member is closed or, if later,

(b) the end of the year of assessment which corresponds to the underwriting year in which he ceased to be a member of Lloyd’s under the rules or practice of Lloyd's.

(6) For the purposes of paragraph (5) above, the last open year of account of a syndicate of which a person was a member shall be regarded as having closed either—

(a) when the member is treated under the rules or practice of Lloyd’s as having been discharged of all his liabilities in relation to that syndicate, whether by the syndicate closing its accounts or by the member or his personal representatives entering into a quota share contract, or

(b) in a case where the member enters, or his personal representatives enter, into a quota share contract before the end of the closing year of the syndicate, at the end of the underwriting year in which the contract is made.

(7) This regulation has effect in relation to any member whose death occurs on or after 6th April 1994.