Explanatory note

Members of Lloyd’s are taxed according to legislation set out in Chapter 3 of Part 2 to the Finance Act 1993 (for individuals) and Chapter 5 of Part 4 to the Finance Act 1994 (for corporation tax). The Lloyd’s (Scottish Limited Partnerships)(Tax) Regulations 1997 (S.I. 1997/2681) ensure that the tax rules for Lloyd’s and partnerships operate satisfactorily in relation to Scottish Limited partnerships (“SLPs”), hitherto the only form of partnerships admitted to membership of Lloyd's.

Lloyd’s has now amended its membership byelaws to admit limited liability partnerships (“LLPs”) with effect from 7th December 2005. These Regulations accordingly amend S.I. 1997/2681 so that in future they will apply to “Lloyd’s partnerships” (defined as SLP or LLP members of Lloyd's).

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