Part II Income Tax, Corporation Tax and Capital Gains Tax
Chapter I General
Income tax: charge, rates and allowances
F151 Charge and rates of income tax for 1993-94.
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F252 Personal and married couple’s allowances.
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Corporation tax charge and rate
53 Charge and rate of corporation tax for 1993.
Corporation tax shall be charged for the financial year 1993 at the rate of 33 per cent.
F354 Small companies.
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Interest: general
55 Relief for interest.
For the year 1993-94 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.
F456. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57 Temporary relief for interest payments.
F5(1)
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F5(2)
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(3)
“(1A)
Where, in the case of any loan—
(a)
the condition specified in subsection (1)(d) above would not (apart from this subsection) be fulfilled with respect to any land by reason of its having ceased at any time to be used by a particular person as his only or main residence; and
(b)
the intention at that time of the person to whom the loan was made, or of each of the annuitants owning an estate or interest in that land, was to take steps, before the end of the period of 12 months after the day on which it ceased to be so used, with a view to the disposal of his estate or interest,
that condition shall be treated in relation to interest on that loan as continuing to be fulfilled with respect to the land from that time until the end of that period or (if sooner) the abandonment by that person or any of those annuitants of his intention to dispose of his estate or interest.
(1B)
If it appears to the Board reasonable to do so, having regard to all the circumstances of a particular case, they may direct that in relation to that case subsection (1A) above shall have effect as if for the reference to 12 months there were substituted a reference to such longer period as meets the circumstances of that case.”
F5(4)
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(5)
This section shall have effect in relation to payments of interest made on or after 16th March 1993 (whenever falling due).
F5(6)
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F6(7)
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58 Overclaims in respect of deductions of mortgage interest.
(1)
“(7)
The following provisions of the Management Act, namely—
(a)
section 29(3)(c) (excessive relief),
(b)
section 30 (tax repaid in error etc.),
(c)
section 88 (interest), and
(d)
section 95 (incorrect return or accounts),
shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable in accordance with regulations made by virtue of subsection (6) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as a relief which was not due.”
(2)
This section shall not apply in relation to any payment if the payment, or the claim on which it is made, was made before the day on which this Act is passed.
F759 Interest payments to persons not ordinarily resident in UK.
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F860. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest etc. on debts between associated companies
F961. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1062. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1162A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1263. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1364. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1465. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1566. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charitable donations
F1667 Donations from companies and individuals.
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F1768 Payroll deduction schemes.
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F1869 Contributions to agent’s expenses.
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Benefits in kind
70 Car benefits: 1993-94.
(1)
“Part I Tables of Flat Rate Cash Equivalents
Table ACars with an original market value up to £19,250 and having a cylinder capacity
Cylinder capacity of car in cubic centimetres
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
1,400 or less
£2,310
£1,580
More than 1,400 but not more than 2,000
£2,990
£2,030
More than 2,000
£4,800
£3,220
Table BCars with an original market value up to £19,250 and not having a cylinder capacity
Original market value of car
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
Less than £6,000
£2,310
£1,580
£6,000 or more but less than £8,500
£2,990
£2,030
£8,500 or more but not more than £19,250
£4,800
£3,220
Table CCars with an original market value of more than £19,250
Original market value of car
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
More than £19,250 but not more than £29,000
£6,210
£4,180
More than £29,000
£10,040
£6,660”
(2)
This section shall have effect for the year 1993-94.
71 Car fuel: 1993-94.
(1)
“TABLE A
Cylinder capacity of car in cubic centimetres
Cash equivalent
1,400 or less
£600
More than 1,400 but not more than 2,000
£760
More than 2,000
£1,130
TABLE AB
Cylinder capacity of car in cubic centimetres
Cash equivalent
2,000 or less
£550
More than 2,000
£710
TABLE B
Original market value of car
Cash equivalent
Less than £6,000
£600
£6,000 or more but less than £8,500
£760
£8,500 or more
£1,130”
(2)
In subsection (5) of that section (reductions in cash equivalents) the words “or 3” shall be omitted.
(3)
This section shall have effect for the year 1993-94.
F1972 Car and car fuel benefits: 1994-95 onwards.
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F2073 Vans.
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F2074 Heavier commercial vehicles.
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F2075 Sporting and recreational facilities.
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F2076 Removal expenses and benefits.
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Taxation of distributions etc.
77 Application of lower rate.
F21(1)
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F21(2)
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F22(3)
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F23(4)
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(5)
This section shall apply in relation to the year 1993-94 and subsequent years of assessment.
F2478. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
79 Provisions supplemental to sections 77 and 78.
(1)
Schedule 6 to this Act (which makes further provision for the purposes of and in connection with the provisions of sections 77 and 78 above) shall have effect.
F25(2)
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F26(3)
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F2780 Transitional relief for charities etc.
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F2881. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chargeable gains
82 Annual exempt amount for 1993-94.
For the year 1993-94 section 3 of the M1Taxation of Chargeable Gains Act 1992 (annual exempt amount) shall have effect as if the amount specified in subsection (2) were £5,800, and accordingly subsection (3) of that section (indexation) shall not apply for that year.
83 Annual exempt amount: indexation for 1994-95 onwards.
(1)
In section 3(3) of the M2Taxation of Chargeable Gains Act 1992 (indexation of annual exempt amount) for “December” (in each place) there shall be substituted “
September
”
.
(2)
This section shall have effect for the year 1994-95 and subsequent years of assessment.
84 Re-organisations etc. involving debentures.
(1)
“(6A)
For the purposes of this section “corporate bond” also includes, except in relation to a person who acquires it on or after a disposal in relation to which section 115 has or has had effect in accordance with section 116(10)(c), any debenture issued on or after 16th March 1993 which is not a security (as defined in section 132) but—
(a)
is issued in circumstances such that it would fall by virtue of section 251(6) to be treated for the purposes of section 251 as such a security; and
(b)
would be a corporate bond if it were a security as so defined.”
(2)
“(6)
For the purposes of this section a debenture issued by any company on or after 16th March 1993 shall be deemed to be a security (as defined in section 132) if—
(a)
it is issued on a reorganisation (as defined in section 126(1)) or in pursuance of its allotment on any such reorganisation;
(b)
it is issued in exchange for shares in or debentures of another company and in a case unaffected by section 137 where one or more of the conditions mentioned in paragraphs (a) to (c) of section 135(1) is satisfied in relation to the exchange;
(c)
it is issued under any such arrangements as are mentioned in subsection (1)(a) of section 136 and in a case unaffected by section 137 where section 136 requires shares or debentures in another company to be treated as exchanged for, or for anything that includes, that debenture; or
(d)
it is issued in pursuance of rights attached to any debenture issued on or after 16th March 1993 and falling within paragraph (a), (b) or (c) above.”
(3)
This section shall have effect in relation to any chargeable period ending on or after 16th March 1993 but, in relation to any accounting period of a company which began before 6th April 1992, this section shall have effect as if the references in this section, and in the amendments made by this section, to provisions of the Taxation of Chargeable Gains Act 1992 were references to such of the provisions of the M3Capital Gains Tax Act 1979 and the M4Finance Act 1984 as correspond to those provisions and have effect in relation to that accounting period.
85 Personal equity plans.
“(4)
Regulations under this section may include provision which, for cases where a person subscribes to a plan by transferring or renouncing shares or rights to shares—
(a)
modifies the effect of this Act in relation to their acquisition and their transfer or renunciation; and
(b)
makes consequential modifications of the effect of this Act in relation to anything which (apart from the regulations) would have been regarded on or after their acquisition as an indistinguishable part of the same asset.”
86 Roll-over relief.
(1)
“CLASS 6
Ewe and suckler cow premium quotas (that is, rights in respect of any ewes or suckler cows to receive payments by way of any subsidy entitlement to which is determined by reference to limits contained in F29an EU instrument).”
F30(2)
The Treasury may by order made by statutory instrument amend section 155 of the Taxation of Chargeable Gains Act 1992 (roll-over relief: relevant classes of assets) so as to add to or amend the classes of assets specified in that section.
(2A)
But an order under subsection (2) may not restrict the assets which fall within a class listed in that section (whether by virtue of subsection (2) or otherwise).
(2B)
An order under subsection (2) may make such consequential amendments of section 156ZB of, or Schedule 7AB to, the Taxation of Chargeable Gains Act 1992 as appear to the Treasury to be appropriate.
(3)
A statutory instrument containing an order under subsection (2) above shall be subject to annulment in pursuance of a resolution of the House of Commons.
(4)
Subsection (1) above shall apply where the disposal of the old assets (or an interest in them) or the acquisition of the new assets (or an interest in them) is on or after 1st January 1993; but, in relation to any accounting period of a company which began before 6th April 1992, subsection (1) above shall have effect as if the inserted class were numbered 5 and were inserted after Class 4 in section 118 of the M6Capital Gains Tax Act 1979.
87 Relief on retirement or re-investment.
(1)
Schedule 7 to this Act (which amends the provisions of the Taxation of Chargeable Gains Act 1992 with respect to retirement relief and makes new provision in relation to relief on the re-investment of certain gains) shall have effect.
(2)
This section and that Schedule shall have effect in relation to any disposal made on or after 16th March 1993.
88 Restriction on set-off of pre-entry losses.
(1)
“177A Restriction on set-off of pre-entry losses.
Schedule 7A to this Act (which makes provision in relation to losses accruing to a company before the time when it becomes a member of a group of companies and losses accruing on assets held by any company at such a time) shall have effect.”
(2)
The Schedule set out in Schedule 8 to this Act shall be inserted after Schedule 7 to that Act.
(3)
This section and that Schedule—
(a)
shall apply for the calculation of the amount to be included in respect of chargeable gains in a company’s total profits for any accounting period ending on or after 16th March 1993; but
(b)
shall so apply only in relation to the deduction from chargeable gains accruing on or after 16th March 1993 of amounts in respect of, or of amounts carried forward in respect of—
(i)
pre-entry losses accruing before it became a member of the relevant group to a company whose membership of that group began or begins at a time on or after 1st April 1987; and
(ii)
losses accruing on the disposal of any assets so far as it is by reference to such a company that the assets fall to be treated as being or having been pre-entry assets or assets incorporating a part referable to pre-entry assets.
(4)
In relation to accounting periods beginning before 6th April 1992 this section and that Schedule shall have effect as if—
(a)
the section and Schedule inserted by subsections (1) and (2) above were inserted in the M7Capital Gains Tax Act 1979; and
(b)
references in the Schedule so inserted to provisions of the M8Taxation of Chargeable Gains Act 1992 were references to such of the provisions of that Act of 1979 or of any other enactment as correspond to the provisions referred to and have effect in relation to that accounting period.
89 De-grouping charges.
(1)
“at whichever is the later of the following, that is to say—
(a)
the time immediately after the beginning of the accounting period of that company in which or, as the case may be, at the end of which the company ceases to be a member of the group; and
(b)
the time when under subsection (3) above it is treated as having reacquired the asset;
and subsection (2) of section 409 of the Taxes Act (group relief) shall require any apportionment under that subsection to be made accordingly but shall not require any reference in this subsection to an accounting period to have effect for any of the purposes specified in subsection (3) of that section as a reference to any accounting period other than a true accounting period. ”
(2)
This section shall have effect in relation to accounting periods ending after the day appointed for the purposes of section 180(1)(b) of that Act.
F3190. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
91 Deemed disposals of unit trusts by insurance companies.
(1)
Section 212 of the Taxation of Chargeable Gains Act 1992 (annual deemed disposal by insurance companies of unit trusts) shall have effect in relation to accounting periods beginning on or after 1st January 1993; and neither that section nor section 46 of the M9Finance Act 1990 (which is consolidated in that section) shall have effect in relation to any earlier accounting period in relation to which either of them would have applied apart from this subsection.
F32(2)
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(3)
In subsection (7) of that section 212, in the words after paragraph (b)
(application of definitions in the Taxes Act 1988), for
“and 214” there shall be substituted “
to 214A
”
.
(4)
“(1A)
Subsection (1) above shall not apply to chargeable gains or allowable losses except so far as they are gains or losses which—
(a)
are referable to basic life assurance and general annuity business; or
(b)
would (apart from that subsection) be taken into account in computing the profits of any business treated as a separate business under section 458 of the Taxes Act;
and that subsection shall apply separately in relation to the gains and losses falling within paragraph (a) above and those falling within paragraph (b) above for the purpose of determining what chargeable gains or allowable losses so referable are to be treated as accruing under that subsection and what chargeable gains or allowable losses to be so taken into account are to be treated as so accruing.”
F33(5)
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F34(6)
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Corporation tax: currency
F3592The basic rule: sterling to be used
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F3592ACompany operating in sterling and preparing accounts in another currency
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F3592BCompany operating in currency other than sterling and preparing accounts in another currency
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F3592CCompany preparing accounts in currency other than sterling
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F3592DSterling equivalents: the basic rule
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F3592DASterling equivalents: carried-back amounts
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F3592DBSterling equivalents: carried-forward amounts
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F3592DCAdjustment of sterling losses: carried-back amounts
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F3592DDAdjustment of sterling losses: carried-forward amounts
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F3592DEMeaning of “carried-back amount” and “carried-forward amount”
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F3592EInterpretation of sections 92A to 92DD
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F3695. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3796 Foreign companies: trading currency.
(1)
“4A
(1)
Sub-paragraph (2) below applies where—
(a)
the company carries on a trade, and
(b)
the currency used in the accounts of the company for an accounting period is a currency other than sterling.
(2)
It shall be assumed that by virtue of regulations under section 93 of the Finance Act 1993 (corporation tax: currency to be used) the basic profits or losses of the trade for the accounting period are to be computed and expressed for the purposes of corporation tax in the currency used in the accounts of the company for the period.
(3)
References in this paragraph to the accounts of a company—
(a)
are to the accounts which the company is required by the law of its home State to keep, or
(b)
if the company is not required by the law of its home State to keep accounts, are to the accounts of the company which most closely correspond to the individual accounts which companies formed and registered under the M10Companies Act 1985 are required by that Act to keep;
and for the purposes of this paragraph the home State of a company is the country or territory under whose law the company is incorporated.
(4)
The reference in sub-paragraph (2) above to the basic profits or losses of the trade for the accounting period shall be construed in accordance with section 93 of the Finance Act 1993.”
(2)
This section applies in relation to any accounting period beginning on or after the day appointed under section 165(7)(b) below.
Overseas life insurance companies
F3897 Modification of Taxes Act 1988.
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F3998 Modification of section 440 of Taxes Act 1988.
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F4099. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
100 Income from investments attributable to BLAGAB, etc.
F41(1)
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(2)
In section 475 of that Act (tax-free Treasury securities: exclusion of interest on borrowed money), in subsection (6)—
F41(a)
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(b)
for the words “of the life assurance fund”, in each place where they occur, there shall be substituted the words “
attributable to basic life assurance and general annuity business
”
.
(3)
This section shall apply in relation to accounting periods beginning after 31st December 1992.
F42101 Modification of Finance Act 1989.
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F43102 Modification of Taxation of Chargeable Gains Act 1992.
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103 Amendment of definition and repeals.
F44(1)
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(2)
The following provisions of that Act shall cease to have effect—
(a)
section 445 (charge to tax on investment income of overseas life insurance company);
(b)
section 446(1) (qualifying distributions part of profits of pension business of overseas life insurance company);
(c)
section 447(1), (2) and (4) (set-off of income tax and tax credits against corporation tax assessed under section 445);
(d)
section 448 (qualifying distributions and tax credits);
(e)
section 449 (double taxation agreements);
(f)
section 724(5) to (8) (special provisions of accrued income scheme for overseas life insurance companies);
(g)
section 811(2)(c) (provision about deduction of foreign tax not to affect overseas life insurance company charged under section 445);
(h)
paragraph 1(9) of Schedule 19AB (payments on account of tax credits in case of pension business: special provision for overseas life insurance companies).
F45(3)
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F46(4)
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Indexation: miscellaneous
F48106 Earnings cap etc: no indexation in 1993-94.
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107 Indexation of allowances etc. for 1994-95 onwards.
(1)
The Taxes Act 1988 shall be amended as mentioned in subsections (2) to (6) below.
F49(2)
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(3)
In section 257C—
F50(a)
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(b)
subsection (2) (no change required for PAYE before 18th May) shall be omitted.
F51(4)
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F51(5)
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F51(6)
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F51(7)
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(8)
This section shall have effect for the year 1994-95 and subsequent years of assessment.
Miscellaneous provisions about reliefs
F52108 Counselling services for employees.
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109 Pre-trading expenditure.
F53(1)
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F53(2)
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F54(3)
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F55(4)
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F56110 Waste disposal expenditure.
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F57111 Business expansion scheme: loan linked investments.
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F58112 Employers’ pension contributions.
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Capital allowances
F59113. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F60114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F61115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F62116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F63117 Transactions between connected persons etc.
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Miscellaneous
F64118 Scottish trusts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
119 Controlled foreign companies.
(1)
In section 750(1) of the Taxes Act 1988 (meaning of lower level of taxation for purposes of provisions relating to controlled foreign companies) for “one-half” there shall be substituted “
three-quarters
”
.
(2)
Subsection (1) above shall apply in relation to accounting periods beginning on or after 16th March 1993.
(3)
Where a company is by virtue of section 749(1) or (2) of the Taxes Act 1988 regarded as resident in a territory outside the United Kingdom and (apart from this section)—
(a)
an accounting period of the company would begin before 16th March 1993 and end on or after that date, and
(b)
the company would not be considered to be subject, by virtue of section 750(1) of that Act, to a lower level of taxation in that accounting period in the territory in which it is regarded as resident,
for the purposes of Chapter IV of Part XVII of that Act that accounting period shall be treated as ending on 15th March 1993.
120 Pay and file: miscellaneous amendments.
Schedule 14 to this Act (which makes various amendments of the M15Taxes Management Act 1970, the Taxes Act 1988 and the M16Finance Act 1989 with a view to, or in connection with, the introduction of “pay and file”) shall have effect.
F65121. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
122 Application of Income Tax Acts etc. to public departments.
(1)
In subsection (2) of section 829 of the Taxes Act 1988 (restriction on application of Income Tax Acts to public departments), at the end there shall be inserted “
unless it is tax which would not have been so borne but for a failure by a public office or department of the Crown to make a deduction required by virtue of subsection (1) above.
”
(2)
The provisions of Parts IX and X of the Taxes Management Act 1970 (interest and penalties) shall apply in relation to public offices and departments of the Crown for the purposes, so far as they so apply, of the other provisions of that Act and of the provisions of the Income Tax Acts mentioned in section 829(1) of the Taxes Act 1988.
(3)
This section shall have effect in relation to the year 1993-94 and subsequent years of assessment.
F66123 Expenditure involving crime.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F67124 Expenses of Members of Parliament.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter II Exchange Gains and Losses
Accrual of gains and losses
F68125. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F69126. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F70127. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading gains and losses
F71128. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-trading gains and losses
F72129. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F73130. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F74131 Non-trading gains and losses: relief.
(1)
This section applies where—
(a)
a company is treated as incurring in an accounting period a loss or losses by virtue of section 129 above, and
(b)
it is not treated as receiving in the accounting period any amount by virtue of that section;
and where this section applies by virtue of this subsection references to the relievable amount for the accounting period are to an amount equal to amount B.
(2)
This section also applies where—
(a)
a company is treated as incurring in an accounting period a loss or losses by virtue of section 129 above,
(b)
it is treated as receiving in the accounting period an amount or amounts by virtue of that section, and
(c)
amount B exceeds amount A;
and where this section applies by virtue of this subsection references to the relievable amount for the accounting period are to an amount equal to amount B minus amount A.
(3)
The company may claim under this subsection that the whole or part of the relievable amount for an accounting period shall be treated for the purposes of section 403(1) of the Taxes Act 1988 (group relief) as if it were a loss incurred by the company in the period in carrying on a trade, and in such a case section 403(2) (exclusions) shall not apply.
(4)
The company may claim under this subsection that the whole or part of the relievable amount for an accounting period shall be set off for the purposes of corporation tax against profits (of whatever description) of that accounting period; and in such a case, subject to any relief for a loss incurred in a trade in an earlier accounting period, those profits shall then be treated as reduced accordingly.
(5)
Where a company has made no claim under subsection (3) or (4) above as regards the relievable amount for an accounting period, the company may claim under this subsection that—
(a)
the whole of the relievable amount, or
(b)
where the relievable amount exceeds the relevant exchange profits, so much of the relievable amount as is equal to those profits,
shall be treated as mentioned in subsection (7) below.
(6)
Where a company has made a claim under subsection (3) or (4) above as regards the relievable amount for an accounting period, the company may claim under this subsection that—
(a)
such part of the relievable amount as is not the subject of any such claim, or
(b)
where that part exceeds the relevant exchange profits, so much of that part as is equal to those profits,
shall be treated as mentioned in subsection (7) below.
(7)
Where a company claims under subsection (5) or (6) above as regards the whole or part of the relievable amount for an accounting period, the whole or part concerned shall be set off for the purposes of corporation tax against the exchange profits of preceding accounting periods falling wholly or partly within the permitted period; and (subject to any relief for an earlier loss) the exchange profits of any of those accounting periods shall then be treated as reduced by the whole or part concerned or by so much of it as cannot be set off under this subsection against the exchange profits of a later accounting period.
(8)
For the purposes of subsections (5) and (6) above “the relevant exchange profits” means the total of the following—
(a)
the exchange profits, as reduced by any reliefs for earlier losses and any reliefs falling within subsection (9) below, of all those accounting periods falling wholly within the permitted period, and
(b)
such part of the exchange profits, as so reduced, of any accounting period falling partly before the beginning of the permitted period as is proportionate to the part of the accounting period falling within the permitted period.
(9)
The reliefs falling within this subsection are—
(a)
any relief under section 338 of the Taxes Act 1988 (charges on income) in respect of payments made wholly and exclusively for the purposes of a trade;
(b)
where the company is an investment company for the purposes of Part IV of the Taxes Act 1988, any relief under that section in respect of payments made wholly and exclusively for the purposes of its business.
(10)
For the purposes of subsections (7) and (8) above—
(a)
the exchange profits of an accounting period are the annual profits or gains the company is treated as receiving in that period under section 130 above,
(b)
the permitted period is the period of three years immediately preceding the accounting period first mentioned in subsection (7) above, and
(c)
an earlier loss is a loss incurred, or treated as incurred, in an accounting period earlier than that first mentioned in subsection (7) above.
(11)
The amount of the reduction that may be made under subsection (7) above in the exchange profits of an accounting period falling partly before the beginning of the permitted period shall not exceed a part of those profits proportionate to the part of the accounting period falling within the permitted period.
(12)
If the whole or part of the relievable amount for an accounting period is not dealt with under a claim under this section—
(a)
the company shall be treated as incurring by virtue of section 129 above a loss of an amount equal to the whole or part (as the case may be),
(b)
the company shall be treated as incurring the loss in the next succeeding accounting period, and
(c)
in relation to that accounting period references to amount B shall be construed accordingly.
(13)
A company—
(a)
may not claim under more than one of subsections (3) and (4) above as regards the same part of a relievable amount, and
(b)
where it has claimed under subsection (5)(b) or (6) above as regards part of a relievable amount, may not later claim under subsection (3) or (4) above as regards any part of the relievable amount.
(14)
A claim under any of subsections (3) to (6) above must be made within the period of two years immediately following the accounting period to which the relievable amount relates or within such further period as the Board may allow.
F75132 Modifications where loss carried forward.
(1)
This section applies where section 131(12) above treats a company as incurring a loss in an accounting period by virtue of section 129 above.
(2)
In this section references to amount C are to so much of amount B as the company is treated as incurring in the accounting period otherwise than by virtue of section 131(12).
(3)
Where section 131 above applies by virtue of section 131(1) and this section applies, then, as regards the accounting period—
(a)
if amount C is nil section 131(3) to (6) shall not apply;
(b)
if amount C exceeds nil the references to the relievable amount in section 131(3) to (7), (13) and (14) shall be construed as references to so much of that amount as equals amount C.
(4)
Where section 131 above applies by virtue of section 131(2) and this section applies, then, as regards the accounting period—
(a)
if amount C does not exceed amount A section 131(3) to (6) shall not apply;
(b)
if amount C exceeds amount A the references to the relievable amount in section 131(3) to (7), (13) and (14) shall be construed as references to so much of that amount as equals amount C minus amount A.
F76133 Interaction with ICTA.
(1)
Section 131(4) above shall apply before section 393A(1) of the Taxes Act 1988 in relation to profits of the accounting period first mentioned in section 131(4) above.
(2)
Relief shall not be given under section 131(4) above against any ring fence profits of the company; and in this subsection “ring fence profits” has the same meaning as in Chapter V of Part XII of the Taxes Act 1988.
(3)
Where the company incurs a loss in a trade in the accounting period first mentioned in subsection (7) of section 131 above, that subsection shall apply after section 393A(1) of the Taxes Act 1988 in relation to exchange profits of a particular accounting period.
(4)
Relief shall not be given by virtue of section 131(7) above so as to interfere with—
(a)
any relief under section 338 of the Taxes Act 1988 (charges on income) in respect of payments made wholly and exclusively for the purposes of a trade, or
(b)
where the company is an investment company for the purposes of Part IV of the Taxes Act 1988, any relief under that section in respect of payments made wholly and exclusively for the purposes of its business.
(5)
The reference in subsection (3) above to exchange profits of an accounting period shall be construed in accordance with section 131(10) above.
Alternative calculation
F77134. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Main benefit test
F78135. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F79135A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Arm’s length test
F80136. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F81136A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F82137. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F83138. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferral of unrealised gains
F84139. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F85140. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F86141. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F87142. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F88143. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Irrecoverable debts
F89144. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F90145. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency contracts: special cases
F91146. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F92147. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess gains or losses
F93148. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local currency to be used
F94149. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange rate to be used
F95150. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F96151. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation: companies
F97152. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation: assets, liabilities and contracts
F98153. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F99154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F100155. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F101156. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F102157. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation: other provisions
F103158. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F104159. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F105160. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F106161. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F107162. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F108163. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F109164. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous
F110165. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F111166. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F112167. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F113168. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F114168A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F115169. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
170 Amendments.
Schedule 18 to this Act (which contains amendments) shall have effect.
Chapter III Lloyd’s Underwriters etc.
Main provisions
171 Taxation of profits and allowance of losses.
(1)
Income tax for any year of assessment on the profits arising from a member’s underwriting business shall be computed on the profits of that year of assessment.
(2)
As respects the profits arising to a member from his underwriting business for any year of assessment—
F116(a)
the aggregate of those profits shall be chargeable to tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 as the profits of a trade carried on in the United Kingdom; and
(b)
accordingly, no part of those profits shall be treated as relevant foreign income, or be charged to tax under any other Part of that Act or any Part of the Income Tax (Earnings and Pensions) Act 2003;
but nothing in this subsection shall affect the manner in which the amount of any profits arising from assets forming part of an ancillary trust fund is to be computed.
F117(2A)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F118(2B)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F119(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)
Subsection (2) above does not apply in relation to any profits arising before 6th April 1993 from assets forming part of an ancillary trust fund.
172 Year of assessment in which profits or losses arise.
(1)
Subject to the provisions of this Chapter, for the purposes of section 171 above and all other purposes of the Income Tax Acts the profits or losses in any year of assessment of a member’s underwriting business shall be taken to be—
F120(a)
in the case of profits or losses arising directly from his membership of one or more syndicates, those of any previous year or years which are declared in the corresponding underwriting year;
(b)
in the case of profits or losses arising from assets forming part of a F121premium trust fund, those allocated under the rules or practice of Lloyd’s to any previous year or years the profits or losses of which are declared in the corresponding underwriting year; and
(c)
in the case of other profits or losses, those derived from payments received or made in the corresponding underwriting year.
(2)
Subsection (1)(c) above does not apply in relation to payments received or made before 6th April 1993.
F122173 Assessment and collection of tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Members’ trust funds
174F123Premium trust funds.
F124(1)
For the purposes of the Income Tax Acts and the Gains Tax Acts—
(a)
a member shall be treated as absolutely entitled as against the trustees to the assets forming part of a F125premium trust fund of his; and
(b)
where a deposit required by a regulatory authority in a country or territory outside the United Kingdom is paid out of such a fund, the money so paid shall be treated as still forming part of that fund.
(2)
Where an asset forms part of a F125premium trust fund at the beginning of any underwriting year, for the purposes of the Income Tax Acts—
(a)
the trustees of the fund shall be treated as acquiring it on that day, and
(b)
they shall be treated as paying in respect of the acquisition an amount equal to the value of the asset at the time of the acquisition.
(3)
Where an asset forms part of a F125premium trust fund at the end of any underwriting year, for the purposes of the Income Tax Acts—
(a)
the trustees of the fund shall be treated as disposing of it on that day, and
(b)
they shall be treated as obtaining in respect of the disposal an amount equal to the value of the asset at the time of the disposal.
F126(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F126(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)
Subsections (2) to (5) above do not apply to FOTRA securities forming part of a member’s premiums trust fund at the beginning or end of any underwriting year if—
(a)
the member is not domiciled in the United Kingdom at any time in the year, and
(b)
he is either not ordinarily resident in the United Kingdom during the year or a non-resident United Kingdom trader in the year.
(7)
In this section—
“FOTRA securities” has the same meaning as in section 715 of the Taxes Act 1988 (exceptions from accrued income scheme);
“non-resident United Kingdom trader” shall be construed in accordance with subsection (5) of that section;
“underwriting year” does not include the year 1993 or any earlier underwriting year.
175 Special 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.
176 Ancillary trust funds.
(1)
A member shall be treated for the purposes of the Income Tax Acts and the Gains Tax Acts as absolutely entitled as against the trustees to the assets forming part of an ancillary trust fund of his.
(2)
The cost of acquisition and the consideration for the disposal of assets forming part of an ancillary trust fund—
(a)
shall be left out of account in computing for the purposes of income tax the profits or losses of the member’s underwriting business; and
(b)
accordingly, shall not be excluded for the purposes of capital gains tax under section 37 or 39 of the Gains Tax Act.
(3)
None of the following provisions (which apply where an individual entitled to securities dies), namely—
F127(a)
section 636 of ITA 2007 (exception where there is a transfer to a legatee);
F128(b)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F128(c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F128(d)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall apply where the individual concerned is a member and the security concerned forms part of an ancillary trust fund of his.
(4)
In a case where subsection (3)(a) above applies, the deceased’s personal representatives shall be treated for the purposes of F129Part 12 of ITA 2007 and section 728 of the Taxes Act 1988 as the transferor or transferee in relation to transfers of securities as to which the deceased was the transferor or transferee (as the case may be) in the interest period in which he died.
Other special cases
F130177. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
178 Stop-loss and quota share insurance.
(1)
In computing for the purposes of income tax the profits of a member’s underwriting business, each of the following shall be deductible as an expense, namely—
(a)
any premium payable by him under a stop-loss insurance, and any repayment of insurance money paid to him under such an insurance;
(b)
any amount payable by him into the High Level Stop Loss Fund, and any repayment of an amount paid to him out of that Fund; and
F131(c)
where an amount is payable by him under a quota share contract—
(i)
so much of that amount as exceeds the amount of transferred losses that are declared on or before the date the contract takes effect (“the declared amount”), or
(ii)
if the contract does not take effect, the amount so payable under the contract.
(2)
Subject to subsection (3) below, each of the following, namely—
(a)
any insurance money payable to F132a member under a stop-loss insurance in respect of a loss in his underwriting business; and
(b)
any amount payable to a member out of the High Level Stop Loss Fund in respect of such a loss,
shall be treated as a trading receipt in computing the profits arising from that business for the year of assessment which corresponds to the underwriting year in which the loss F133was declared.
(3)
Where, as respects the payment of any such insurance money or amount as is mentioned in subsection (2) above—
(a)
the inspector is not notified of the payment at least 30 days before the time after which any assessment or further assessment of profits for the year of assessment is precluded by section 34 of the Management Act (ordinary time limit of F1344 years), and
(b)
the inspector is not entitled, after that time, to make any such assessment or further assessment by virtue of section 36 (F135loss of tax brought about carelessly or deliberately) or 40(2) (assessment on personal representatives) of that Act,
that subsection shall have effect in relation to that insurance money or amount as if it referred instead to the year of assessment which corresponds to the underwriting year in which the payment is made.
F136(3A)
Where the amount payable by a member under a quota share contract is less than the declared amount, the difference between the two amounts shall be treated as a trading receipt in computing the profits arising from the member’s underwriting business in the year of assessment which corresponds to the underwriting year in which the contract takes effect.
(3B)
Where a member has entered a quota share contract, any amount paid by him to cover a cash call in respect of transferred losses that are not declared at the time the contract takes effect shall be treated—
(a)
for the purposes of subsection (1)(c)(i) and (3A) above, as an amount payable under the contract, and
(b)
for the purposes of section 172, as a payment made at the time the contract takes effect.
F137(4)
For the purposes of this section—
“cash call” has the same meaning as in Part 1 of Schedule 20 to this Act;
“” means any contract between a member and another person which—
(a)
is made in accordance with the rules or practice of Lloyd’s, and
(b)
provides for that other person to take over any rights and liabilities of the member under any of the syndicates of which he is a member;
and where the taking over of a member’s rights and liabilities is conditional upon the occurrence of any event, the contract does not take effect until that event occurs; and
“transferred loss”, in relation to such a contract, means a loss for which that other person takes over liability under the contract (disregarding, in the case of a loss that has been declared at the time it is taken over, any part of it in respect of which the member has paid a cash call before that time).
Miscellaneous
179 Cessation: final year of assessment.
(1)
Subject to subsection (5) below, this section applies where a member ceases to carry on his underwriting business, whether by reason of death or otherwise.
(2)
Subject F138. . . to the provisions of any regulations made by the Board, the member’s final year of assessment shall be that which corresponds to the underwriting year in which his deposit at Lloyd’s is paid over to him or his personal representatives or assigns.
F139(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)
For the purposes of section 171 above and all other purposes of the Income Tax Acts, any profits or losses arising to the member from his underwriting business which are not taken (by virtue of the provisions of this Chapter) to be profits or losses of an earlier year of assessment shall be taken to be profits or losses of his final year of assessment.
(5)
This section does not apply in any case where the member’s deposit at Lloyd’s is paid over to him or his personal representatives or assigns before 1st January 1993.
F140179A Death of member.
(1)
This section applies where a member ceases to carry on his underwriting business by reason of death.
(2)
For the purposes of assessing the profits of the member’s underwriting business, the member shall be treated as having died at the end of the year of assessment which corresponds to the underwriting year immediately preceding that in which he actually died.
(3)
For the purposes of the Income Tax Acts—
(a)
the carrying on of the member’s underwriting business by his personal representatives shall not be treated as a change in the persons engaged in the carrying on of that business; and
(b)
subject to the provisions of any regulations made by the Board, the business shall be treated as continuing until the member’s deposit at Lloyd’s is paid over to his personal representatives.
F141179BConversion to F142underwriting through partnership or company
Schedule 20A to this Act (which makes provision for certain reliefs to be available where a member converts to limited liability underwriting F143or a Lloyd’s partnership converts to underwriting through a company) shall have effect.
180 Underwriting profits to be F144relevant UK earnings etc.
(1)
In relation to any member, all profits arising to him from his underwriting business—
(a)
shall be treated for the purposes of the Income Tax Acts as immediately derived from the carrying on by him of that business, and
F145(b)
accordingly, shall constitute—
(i)
for the purposes of Part 4 of the Finance Act 2004, relevant UK earnings within section 189(2)(b) of that Act, and
(ii)
income in relation to which the treatment in section 836(2) of ITA 2007 does not apply.
(2)
This section does not apply in relation to profits of the year 1992-93 or earlier years of assessment.
181 Lloyd’s underwriting agents.
In section 43 of the M17Finance Act 1989 (Schedule D: computation), subsections (6) and (7) (which extend certain time limits for persons permitted by the Council of Lloyd’s to act as underwriting agents at Lloyd’s) shall cease to have effect in relation to periods of account ending on or after 30th June 1993.
Supplemental
182 Regulations.
(1)
The Board may by regulations provide—
(a)
for the assessment and collection of tax charged in accordance with section 171 above F146. . . ;
(b)
for making, in the event of any changes in the rules or practice of Lloyd’s, such amendments of this Chapter as appear to the Board to be expedient having regard to those changes;
(c)
for modifying the application of this Chapter in cases where a syndicate continues after the end of its closing year or a member dies or otherwise ceases to carry on his underwriting business;
F147(ca)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)
for giving credit for foreign tax.
F148(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F148(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F148(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)
Regulations made, or deemed to have been made, under any of the following enactments (regulations about Lloyd’s underwriters), namely—
(a)
section 451(1) or (1A) of the Taxes Act 1988,
(b)
section 92(5) of the M18Finance Act 1989, or
(c)
section 209(4) of the Gains Tax Act,
which were in force immediately before 6th April 1992 shall continue in force for the year 1992-93 and subsequent years of assessment notwithstanding the repeal of that enactment by this Act, and shall be deemed to have been made under this section.
F149(6)
Any power to make regulations conferred by this section includes power to make—
(a)
different provision for different cases or different purposes, and
(b)
incidental, supplemental or transitional provision and savings.
183 Consequential amendments.
F150(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F151(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F152(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F153(4)
In section 710(14) of that Act (meaning of “business” and “premiums trust fund”), for the words “section 457” there shall be substituted the words “
section 184 of the Finance Act 1993
”
.
(5)
In the following provisions (which relate to nominees, trustees etc.), namely—
Section 720(3) of the Taxes Act 1988,
paragraph 18(1) of Schedule 4 to that Act,
paragraph 10(1) of Schedule 11 to the Finance Act 1989, and
paragraph 18(1) of Schedule 10 to the M19Finance Act 1990,
the words from “his special reserve fund” to the end shall be omitted.
(6)
In the following provisions (which relate to the death of a member), namely—
section 721(5) of the Taxes Act 1988,
paragraph 18(8) of Schedule 4 to that Act,
paragraph 10(6) of Schedule 11 to the Finance Act 1989, and
paragraph 18(6) of Schedule 10 to the M20Finance Act 1990,
the words from “a special reserve fund” to the end shall be omitted.
(7)
In section 206(2) of the Gains Tax Act (Lloyd’s underwriters), after the words “subsection (1) above” there shall be inserted the words “
and section 174(1) of the Finance Act 1993
”
.
(8)
In section 209 of that Act (interpretation, regulations about underwriters etc.)—
(a)
in subsection (1), for the words “sections 450 to 456 of the Taxes Act” there shall be substituted the words “
Chapter III of Part II of the Finance Act 1993
”
and for the words “sections 450 to 456”, in the second place where they occur, there shall be substituted the words “
that Chapter
”
; and
(b)
in subsection (6), the words “or (4)” shall be omitted.
184 Interpretation and commencement.
(1)
In this Chapter, unless the context otherwise requires—
“closing year”—
(a)
in relation to a year of assessment, means the year of assessment next but one following that year;
(b)
in relation to an underwriting year, means the underwriting year next but one following that year; and
(c)
in relation to a syndicate, means the closing year of the underwriting year for which it was formed;
“the Gains Tax Act” means the M21Taxation of Chargeable Gains Act 1992 and
“the Gains Tax Acts” means that Act and any other enactments relating to capital gains tax;
“the High Level Stop Loss Fund” means the fund of that name which, under the rules of Lloyd’s, has been established for the year 1993 and subsequent underwriting years;
“inspector” includes any officer of the Board;
F156“Lloyd’s partnership” means—
(a)
a limited partnership formed under the law of Scotland which is a member of Lloyd’s and is or has been an underwriting member, or
(b)
a limited liability partnership formed under the law of any part of the United Kingdom which is a member of Lloyd’s and is or has been an underwriting member;
“the Management Act” means the M22Taxes Management Act 1970;
“managing agent”, in relation to a syndicate and a year of assessment, 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 the corresponding underwriting year, or
(b)
such other person as may be determined in accordance with regulations made by the Board;
“members’ agent”, in relation to a member of a syndicate and a year of assessment, means—
(a)
the person registered as a members’ agent at Lloyd’s who was acting as such an agent for the member at the end of the corresponding underwriting year, or
(b)
if two or more such persons were so acting and one of them was appointed by the member to be responsible for complying with the requirements of F159the Lloyd’s Underwriters (Tax) Regulations 2005 in relation to all of the syndicates of which he is a member, that person, or
(c)
if two or more such persons were so acting and none of them was so appointed, the person who was so acting for the member in his capacity as a member of the syndicate, or
(d)
such other person as may be determined in accordance with regulations made by the Board;
“prescribed” means prescribed by regulations made by the Board;
“profits” includes gains;
“special reserve fund”, unless the contrary intention appears, means a special reserve fund set up under the arrangements mentioned in section 175(1) above;
“stop-loss insurance” means any insurance taken out by a member against losses in his underwriting business F163, except insurance taken out by entering a quota share contract (within the meaning of section 178 above);
“syndicate” means a syndicate of underwriting members of Lloyd’s formed for an underwriting year;
“underwriting business”, in relation to a member, means his underwriting business as a member of Lloyd’s, whether carried on personally or through an underwriting agent, and does not include any other business carried on by him, and in particular, where he is himself an underwriting agent, does not include his business as such an agent;
“underwriting year” means the calendar year.
(2)
For the purposes of this Chapter—
(a)
an underwriting year and a year of assessment shall be deemed to correspond to each other if the underwriting year ends in the year of assessment;
(b)
the profits or losses of a member’s underwriting business include profits or losses arising to him from assets forming part of a F164premium trust fund or an ancillary trust fund; and
(3)
Subject to any provision to the contrary, the provisions of this Chapter have effect for the year 1992-93 and subsequent years of assessment.