C1.212 Lloyd's underwriters

Capital gains tax
Capital gains tax | Commentary

C1.212 Lloyd's underwriters

Capital gains tax | Commentary

C1.212 Lloyd's underwriters


Lloyd's is a market through which independent insurance underwriters join together in syndicates to sell insurance, usually through its brokers, under the umbrella of the Lloyd's name. It was known as Lloyd's of London until 1997, when it changed its name to Lloyd's.

A member of Lloyd's may be an individual member or a corporate member1. Members may be underwriting members or non-underwriting members. An underwriting member becomes a non-underwriting member from 31 December following the date on which they submit an application to resign from Lloyd's.

A Lloyd's underwriter is known as a Name and they underwrite liabilities up to an agreed amount by membership of a number of Lloyd's syndicates2.

This is discussed in detail in Division E5.6.

Gains and losses of Lloyd's members

Premium trust funds

The premium trust fund is a regulatory requirement. The business of the syndicate is conducted through the premium trust fund under a standard deed approved by Lloyd's. The premium trust fund is a fund into which all premiums are paid, and from which all claims and expenses are paid. The member remains the ultimate beneficiary of the appropriate share of the assets in the fund. Income and profits or losses from assets in the premium trust fund form part of the syndicate's overall trading profit or loss and are not subject to tax as chargeable

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