Paragraph 10 C1F1
United Kingdom
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment, the aggregate amount of any payments which, in respect of the F2relevant underwriting year, are made into his special reserve fund under paragraph 3(1) above shall be deducted as an expense.
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment—
the aggregate amount of any payments which, in respect of the relevant underwriting year, are made out of his special reserve fund under paragraph 4(1) or 5(1) above shall be treated as a trading receipt; and
the aggregate amount of any payments which, in respect of that year, are made into that fund under paragraph 4(2) or (3) or 5(4) above shall be deducted as an expense.
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment, the aggregate amount of any payments which, as a result of the repayment of stop-loss payments in the relevant underwriting year, are made out of his special reserve fund under paragraph 4(6) or 5(7) above shall be treated as a trading receipt.
In computing for the purposes of income tax the profits of a member’s underwriting business for any year of assessment, the aggregate amount of any payments which, in respect of the relevant underwriting year’s closing year, are made out of his special reserve fund under paragraph 6(2) above F3(including where they are also made under paragraph 7(1) above)shall be treated as a trading receipt.
In this paragraph “the relevant underwriting year”, in relation to a year of assessment, means the underwriting year next but two before its corresponding underwriting year.
Annotations
Textual amendments
- F1
Sch. 20 para. 10 omitted (3.5.1994) (temp. for the years 1994-95, 1995-96 and 1996-97) by virtue of 1994 c. 9, s. 228, Sch. 21 para. 14(3)
- F2
Words in Sch. 20 para. 10(1)-(4) substituted (3.5.1994 but without effect for the years 1994-95, 1995-96 and 1996-97) by 1994 c. 9, s. 228, Sch. 21 para. 14(1)(3)
- F3
Words in Sch. 20 para. 10(4) substituted (31.12.1999 with effect for the year 2000-01 and subsequent years of assessment and in relation to payments and transfers of assets made on or after 1.1.2000) by S.I. 1999/3308, reg. 5
- F4
Sch. 20 para. 10(5) inserted (3.5.1994 but without effect for the years 1994-95, 1995-96 and 1996-97) by 1994 c. 9, s. 228, Sch. 21 para. 14(2)(3)
Modifications
- C1
Sch. 20 paras. 10 modified (9.3.1995 with effect for the year 1997-98 and subsequent years of assessment) by S.I. 1995/353, reg. 7(1)(3)(b)
Notes on Schedule 20
Modifications
- C1
Sch. 20 excluded (1.12.1997 with effect with respect to accounting periods of Lloyd's Scottish limited partnerships ending on or after that date) by S.I. 1997/2681, reg. 7(1)