SCHEDULES
C1SCHEDULE 20 Lloyd’s underwriters: special reserve funds
Part II Winding up of old-style funds
Tax consequences of winding up
14
1
Where an asset is transferred into a member’s new-style fund under paragraph 13(1) above, the transfer shall be treated, for the purposes of the Gains Tax Acts, to be a disposal of the asset by the member for a consideration equal to its market value.
2
Sub-paragraph (3) below applies where an amount is paid over to the member or his personal representatives or assigns under paragraph 13(3) above.
3
In computing for the purposes of income tax the profits of the member’s underwriting business for the year 1992-93, it shall be assumed—
a
that the amount paid were a net amount corresponding to a gross amount from which income tax had been duly deducted at the basic rate for that year; and
b
that the corresponding gross amount were a trading receipt for that year.
Sch. 20 excluded (1.12.1997 with effect with respect to accounting periods of Lloyd's Scottish limited partnerships ending on or after that date) by S.I. 1997/2681, reg. 7(1)