Finance Act 1994 (c. 9)

Part IV U.K. Income Tax, Corporation Tax and Capital Gains Tax

Chapter V U.K. Lloyd’s Underwriters: Corporations etc.

Modifications etc. (not altering text)

C1 Pt. IV Chapter V (ss. 219-230) modified (1.12.1997) by S.I. 1997/2681, reg. 3(2)(a)

C2 Pt. IV Chapter V (ss. 219-230) applied (1.5.1995) by 1995 c. 4, s. 129(4)(6)

Pt. IV Chapter V (ss. 219-230) applied (1.5.1995) by 1995 c. 4, s. 127(16)(a)(19)

Main provisions U.K.

219 Taxation of profits. U.K.

(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 [F1 premium] trust fund—

(a) the aggregate of those profits shall be computed for tax purposes under [F2 Part 3 of the Corporation Tax Act 2009] ; and

(b) accordingly, no part of those profits shall be computed for those purposes [F3 otherwise 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 [F5 Part 3 of the Corporation Tax Act 2009] if, and to the extent that, they do not fall to be computed for those purposes [F6 otherwise than under Part 3 of that Act] .

F7 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9 (4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10 (4C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 219(2)(4)(4B) substituted (1.12.2001) by S.I. 2001/3629, art. 87(a)

F2 Words in s. 219(2)(a) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(2)(a) (with Sch. 2 Pts. 1, 2)

F3 Words in s. 219(2)(b) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(2)(b) (with Sch. 2 Pts. 1, 2)

F4 Words in s. 219(3) omitted (21.7.2009) (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 18(a)

F5 Words in s. 219(3) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(3)(a) (with Sch. 2 Pts. 1, 2)

F6 Words in s. 219(3) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 392(3)(b) (with Sch. 2 Pts. 1, 2)

F7 S. 219(4) omitted (21.7.2009) (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 18(b)

F8 S. 219(4A) omitted (21.7.2009) (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 18(b)

F9 S. 219(4B) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 56

F10 S. 219(4C) omitted (21.7.2009) (with effect in accordance with Sch. 14 para. 31 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 14 para. 18(b)

F11 S. 219(5) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

Modifications etc. (not altering text)

C3 S. 219 applied by 2010 c. 8, s. 454(a) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))

220 Accounting period in which certain profits or losses arise. U.K.

(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 [F12 premium] 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

[F13 (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 [F14 section 52 of the Corporation Tax Act 2009] .

Textual Amendments

F12 Words in s. 220(1)(2)(b) substituted (1.12.2001) by S.I. 2001/3629, art. 87(b)

F13 S. 220(2)(b) substituted (1.7.2007 with effect in accordance with reg. 1(2) of the amending S.I.) by The Finance Act 1994, Section 220 (Amendment) Regulations 2007 (S.I. 2007/1616), regs. 1(1), 2

F14 Words in s. 220(3) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 393 (with Sch. 2 Pts. 1, 2)

F15 221 Assessment and collection of tax. U.K.

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Textual Amendments

F15 S. 221 repealed (20.7.2005 for specified purposes, 1.1.2006 in so far as not already in force) by Finance (No. 2) Act 2005 (c. 22), s. 45(4)(8)(9), Sch. 11 Pt. 2(11); S.I. 2005/3337, art. 2