12.Following the Budget 2011 announcement, the Government has been consulting with Lloyd’s and interested parties on proposals to amend the timing of the tax deduction for Lloyd’s member-level stop-loss premiums.
13.Taking into account these discussions, the Government has decided to amend the timing of the tax deduction for all premiums payable by corporate members of Lloyd’s in respect of member-level stop-loss insurance taken out on or after 6 December 2011. The legislation will align the timing of the tax deduction for the premiums with the recognition of the profits to which they relate.
14.Following consultation on the draft legislation published on 6 December, the Government decided to make further provisions to deal with multi-year contracts and renewals of contracts taken out before 6 December 2011.