Explanatory note

These Regulations make provision in relation to special reserve funds of underwriting members of Lloyd’s other than corporate members. Except where otherwise provided the Regulations have effect for the year of assessment 1992–93 and subsequent years of assessment. Authority for the retrospective effect of the Regulations is given by sections 182(4) and 184(3) of the Finance Act 1993.

Regulation 1 provides for citation, commencement and effect, and regulation 2 contains a definition.

Regulation 3 modifies paragraph 1(2) of Schedule 20 to the Finance Act 1993 (“Schedule 20”) so as to provide that the profits or losses arising to a member from his membership of a syndicate in a run off underwriting year of that syndicate shall be attributable to the last underwriting year but one preceding the run off year concerned.

Regulation 4 modifies paragraph 4(1) of Schedule 20 in connection with a cash call made on a member in a run off year of a syndicate.

Regulation 5 prescribes the various periods before the end of which payments into or out of a special reserve fund under Part I of Schedule 20 have to be made.

Regulation 6 prescribes the manner in which the value of a member’s special reserve fund has to be determined and the additional matters to be specified in the report of the fund manager containing the valuation.

Regulation 7 modifies certain provisions of Part I of Schedule 20 so that they apply to a member’s personal representatives where the member dies on or after 6th April 1994 and the personal representatives carry on his underwriting business.

Regulation 8 extends the definitions of “the penultimate underwriting year”, “the relevant underwriting year” and “the relevant year of assessment” in paragraph 11(5) of Schedule 20 (as substituted by paragraph 15(3) of Schedule 21 to the Finance Act 1994 (c. 9)) so as to cover certain situations arising on the death of a member which are not covered by the existing wording of the definitions.