The Lloyd’s Underwriters (Tax) Regulations 1995

Cessation of individual member’s underwriting business – final year of assessment

9.—(1) Where a member who is an individual ceases to carry on his underwriting business, whether by reason of death or otherwise, the member’s final year of assessment shall, in the cases specified in paragraphs (2) to (5) below and subject to subsection (3) of section 179(1), be ascertained in accordance with the provisions of those paragraphs.

(2) In any case where a letter is issued by the Membership Department of Lloyd’s to the member or his agent inviting an application for the repayment of the member’s deposit, the member’s final year of assessment shall be not later than the year of assessment in which falls 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 or his personal representatives or assigns, the member’s final year of assessment shall be that which corresponds to the underwriting year in which his deposit is so paid over or, where paragraph (2) above applies and the year of assessment specified in that paragraph is earlier, that earlier year of assessment.

(4) In any case where the member 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 final year of assessment shall, except in a case to which paragraph (5) below applies, be that which corresponds to the underwriting year in 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 is a member is closed, the member’s final year of assessment shall be either—

(a) 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 is a member is closed or, if later,

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

(6) This regulation has effect in relation to any member—

(a) whose deposit at Lloyd’s is paid over to him or another person or, as the case may be, released or extinguished, on or after 1st January 1993, and

(b) in whose case the last open year of account of any syndicate of which he was a member is closed on or after that date.

(7) For the purposes of this regulation, the last open year of account of a syndicate of which a person is 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 or assigns entering into a quota share contract, or

(b) in a case where the member enters, or his personal representatives or assigns 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.

(1)

Section 179(3) of the Finance Act 1993 was repealed by paragraph 6(1) of Schedule 21, and Part V(25) of Schedule 26, to the Finance Act 1994 in any case where the member dies after the end of the year 1993–94.