Explanatory note

These Regulations amend the Lloyd’s Underwriters (Tax) Regulations 1995 (S.I. 1995/351) (“the principal Regulations”).

The amendments insert three regulations (7A, 7B and 7C) in the principal Regulations.

Regulation 7A, which has effect for the year 1996-97 and subsequent years of assessment, ensures that, in the case of Lloyd’s income received under deduction of tax other than syndicate income (“taxed income”), or tax credits received in respect of Lloyd’s income other than syndicate income, references in sections 59A and 59B of the Taxes Management Act 1970 to income tax deducted from, or paid on, any income in respect of a year of assessment (or treated as deducted or paid) are references to tax deducted or paid in respect of the year of assessment in which the underwriting (or calendar) year in which the tax was deducted or paid ends. Thus, for example, the relevant year of assessment for taxed income received between 1st January 1996 and 5th April 1996 (in the calendar year ending on 31st December 1996) is the year 1996-97, not 1995-96.

Regulation 7B makes a similar provision in relation to section 824 of the Income and Corporation Taxes Act 1988 (“repayment supplement”) for the year 1996-97 and subsequent years of assessment as that made by regulation 7A.

Regulation 7C makes a similar provision in relation to section 835(6) of the Income and Corporation Taxes Act 1988 (“total income”) for the year 1994-95 and subsequent years of assessment.

Authority for the retrospective effect of these Regulations is given by section 182(4) of the Finance Act 1993.