Explanatory note

These Regulations provide administrative machinery for Lloyd’s managing agents to make returns of syndicates' profits and losses for tax purposes, and for assessment and collection of tax (replacing and modernising the provisions of Schedule 19 to the Finance Act 1993). The regulations apply for and in relation to the tax year 2006-07 for individual members of Lloyd's, and for accounting periods beginning after 31st December 2005 for Lloyd’s corporate members.

Regulation 1 provides for citation, commencement and effect, and regulation 2 for interpretation.

Regulation 3 defines a syndicate’s profit or loss for the purposes of the Regulations.

Regulation 4 provides for managing agents to deliver returns of syndicates' profit or loss (a “syndicate determination”), to H.M. Revenue and Customs, and for penalties for failure to do so.

Regulation 5 makes provision for amendment of syndicate determinations by managing agents, and for HMRC enquiries into returns.

Regulation 6 makes provision for HMRC determinations of a syndicate’s profit or loss (in the absence of a return), and regulation 7 makes provision for “discovery determinations.”

Regulation 8 makes provision in connection with relief where there has been a mistake in a return.

Regulation 9 makes provision for apportionment of a syndicate’s profit or loss between its members, and Regulation 10 provides for syndicate determinations and apportionments to be binding on the members. Regulations 11 to 13 make technical provision in connection with assessment of tax, and Regulation 14 for repayment of tax deducted from investment income.

Regulation 15 provides that managing agents may make returns to H.M. Revenue and Customs electronically. Regulations 16 to 18 make amendments and repeals as a consequence of these Regulations.

A Regulatory Impact Assessment has not been published for this instrument as it has no impact (exceeding the de minimis level) on business, charities or voluntary bodies.