Part IV Income Tax, Corporation Tax and Capital Gains Tax

Chapter V Lloyd’s Underwriters: Corporations etc.

Main provisions

219Taxation of profits.

(1)

Corporation tax for any accounting period on the profits arising from a corporate member’s underwriting business shall be computed on the profits of that accounting period.

(2)

As respects the profits arising to a corporate member for any accounting period directly from its membership of one or more syndicates, or from assets forming part of a F1premium trust fund—

(a)

the aggregate of those profits shall be computed for tax purposes under F2Part 3 of the Corporation Tax Act 2009 ; and

(b)

accordingly, no part of those profits shall be computed for those purposes F3otherwise than under Part 3 of the Corporation Tax Act 2009 .

(3)

F4... the profits arising to a corporate member for any accounting period—

(a)

from assets forming part of an ancillary trust fund; or

(b)

from assets employed by it in, or in connection with, its underwriting business,

shall be computed for tax purposes under F5Part 3 of the Corporation Tax Act 2009 if, and to the extent that, they do not fall to be computed for those purposes F6otherwise than under Part 3 of that Act .

F7(4)

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F8(4A)

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F9(4B)

F10section 1109 of the Corporation Tax Act 2010 (entitlement to tax credit) shall not apply where the distribution there mentioned is a distribution in respect of any asset of a corporate member’s F1premium trust fund.

F11(4C)

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F12(5)

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220 Accounting period in which certain profits or losses arise.

(1)

For the purposes of section 219 above and all other purposes of the Corporation Tax Acts, the profits or losses arising to a corporate member in any accounting period directly from its membership of one or more syndicates, or from assets forming part of a F13premium trust fund, shall be taken to be—

(a)

if two underwriting years each fall partly within that period, the aggregate of the apportioned parts of those profits or losses in those years; and

(b)

if a single underwriting year falls wholly or partly within that period, those profits or losses or (as the case may be) the apportioned part of those profits or losses in that year.

(2)

Subject to the provisions of this Chapter, for the purposes of subsection (1) above and all other purposes of the Corporation Tax Acts—

(a)

the profits or losses arising to a corporate member in any underwriting year directly from its membership of one or more syndicates shall be taken to be those of any previous year or years which are declared in that year; and

F14(b)

the profits or losses arising to a corporate member from assets forming part of a premium trust fund which shall be taken to be profits or losses of any underwriting year are—

(i)

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 that year, and

(ii)

those arising in that year and not so allocated to any previous year or years.

(3)

In this section “apportioned part”, in relation to the profits or losses of an underwriting year, means a part apportioned under F15section 52 of the Corporation Tax Act 2009 .

F16221 Assessment and collection of tax.

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