2006 No. 112

INCOME TAX
CORPORATION TAX

The Lloyd’s Underwriters (Conversion to Limited Liability Underwriting) (Tax) Regulations 2006

Made

Laid before the House of Commons

Coming into force

The Commissioners for Her Majesty’s Revenue and Customs, in exercise of the powers conferred by section 182(1)(b) of the Finance Act 19931 and now vested in them2, and having regard to the relevant changes in the rules or practice of Lloyd's, make the following Regulations:

Citation and commencement1

These Regulations may be cited as the Lloyd’s Underwriters (Conversion to Limited Liability Underwriting) (Tax) Regulations 2006 and shall come into force on 14th February 2006.

Amendment of Schedule 20A to the Finance Act 19932

In Schedule 20A to the Finance Act 19933, in paragraph 8, for the definition of “successor partnership” substitute—

  • “ successor partnership” means—

    1. a

      a limited partnership formed under the law of Scotland which is a successor member, or

    2. b

      a limited liability partnership formed under the law of any part of the United Kingdom which is a successor member.

David VarneyMichael HansonTwo of the Commissioners for Her Majesty’s Revenue and Customs

(This note is not part of the Regulations)

Under the rules of Lloyd's, an individual member of Lloyd’s may transfer his underwriting business to a company or a Scottish limited partnership (known as “conversion” to limited liability underwriting). Schedule 20A to the Finance Act 1993 allows members so converting to carry forward income tax losses and claim CGT rollover relief on the disposal of certain business assets. A Scottish limited partnership which takes over an individual’s underwriting business on such a conversion is defined in Schedule 20A to the Finance Act 1993 as a “successor partnership.”

Lloyd’s has now amended its membership byelaws to admit limited liability partnerships to membership. These Regulations accordingly amend the definition of “successor partnership” to include limited liability partnerships.

A Regulatory Impact Assessment has not been published for this instrument as it has no significant impact on business, charities or voluntary bodies.