REV BN 14: Lloyd's Regulations

Who is likely to be affected?

1. Members of Lloyd's and managing agents of Lloyd's syndicates.

General description of the measure

2. Amendments to the powers for making Regulations relating to Lloyd's underwriters.

Operative date

3. The measure will apply to Regulations made after the passing of the 2005 Finance Bill.

Current law and proposed revisions

4. Tax rules for Lloyd's underwriters are set out in Finance Act 1993 and Finance Act 1994. Underwriters are taxed according to their share of the profits or losses of syndicates of which they are members. In order to facilitate the assessment and collection of tax from underwriters, Lloyd's managing agents are required to make returns to the Inland Revenue of syndicate profits and losses, computed for tax purposes.

5. The legislation allows Regulations to be made on a range of matters, including the assessment and collection of tax. This measure amends these Regulation-making powers, primarily in order to permit the repeal of Schedule 19 of Finance Act 1993 and its replacement with Regulations made by Statutory Instrument. This will allow greater flexibility when amending and modernising the current procedures, for example by allowing for electronic filing of syndicate returns and by applying self assessment principles to the determination of syndicate profits.

Further advice

6. If you have any questions about this change, please contact Tony Sadler on 020 7147 2616. Information about Budget measures is available on the Inland Revenue website Inland Revenue website.