SCHEDULES

SCHEDULE 20 Lloyd’s underwriters: special reserve funds

Part I Requirements for and tax consequences of new-style funds

Tax exemption for profits arising from assets of fund

9

(1)

Profits or losses arising from assets forming part of a special reserve fund shall be excluded for the purposes of income tax under the Income Tax Acts, and for the purposes of capital gains tax under the Gains Tax Acts.

(2)

Where for any underwriting year income tax has been deducted from any profits arising from assets forming part of a special reserve fund, the fund manager may, at any time after the end of that year, claim repayment of that tax.

F1(3)

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