Statutory Instruments
2016 No. 597
Capital Gains Tax
The Lloyd’s Underwriters (Roll-over Relief on Disposal of Assets of Ancillary Trust Fund) (Tax) Regulations 2016
Made
23rd May 2016
Laid before the House of Commons
25th May 2016
Coming into force
16th June 2016
The Commissioners for Her Majesty’s Revenue and Customs, in exercise of the powers conferred by section 182(1)(b) of the Finance Act 1993( 1 ), and now vested in them( 2 ), and considering it expedient to make amendments to Chapter III, Part II of that Act having regard to changes in the rules of Lloyd’s, make the following Regulations:
Citation, commencement and effect
1. —(1) These Regulations may be cited as the Lloyd’s Underwriters (Roll-over Relief on Disposal of Assets of Ancillary Trust Fund) (Tax) Regulations 2016 and come into force on 16th June 2016.
(2) The amendments made by regulation 4 have effect in relation to ATF disposals (within the meaning of paragraph 4 of Schedule 20A to the Finance Act 1993) made on or after 16th June 2016 (even if the corresponding syndicate capacity disposal was made before that date).
(3) The amendments made by regulation 7 have effect in relation to ATF disposals (within the meaning of paragraph 5C of Schedule 20A to the Finance Act 1993) made on or after 16th June 2016 (even if the corresponding syndicate capacity disposal was made before that date).
Amendment of the Finance Act 1993
2.Schedule 20A (conversion to underwriting through partnership or company)( 3 ) to the Finance Act 1993 is amended as follows.
3. In paragraph 1, in sub-paragraph (6) omit “(“the successor company’s first underwriting year”)”.
4. In paragraph 4—
(a) in sub-paragraph (6) after “exceeds” insert “120% of”,
(b) in sub-paragraph (7) for the words from “lesser of” to the end substitute “appropriate percentage of the amount of security required to be provided by the successor company in respect of its underwriting business in the underwriting year in which the ATF disposal is made.”,
(c) after sub-paragraph (7) insert—
“ (7A) In sub-paragraph (7) above “the appropriate percentage” means the percentage that equates to the percentage of the ordinary share capital of the successor company that is beneficially owned by the member immediately before the ATF disposal. ” .
5. In paragraph 5, in sub-paragraph (1) omit the definition of “the member’s last underwriting year” and the definition of “the successor company’s first underwriting year”.
6. In paragraph 5A, in sub-paragraph (7) omit “(“the successor company’s first underwriting year”)”.
7. In paragraph 5C—
(a) in sub-paragraph (6) after “exceeds” insert “120% of”,
(b) in sub-paragraph (7) for the words from “lesser of” to the end substitute “appropriate percentage of the amount of security required to be provided by the successor company in respect of its underwriting business in the underwriting year in which the ATF disposal is made.”,
(c) after sub-paragraph (7) insert—
“ (7A) In sub-paragraph (7) above “the appropriate percentage” means the percentage that equates to the percentage of the ordinary share capital of the successor company that is beneficially owned by the relevant partner immediately before the ATF disposal. ” .
8. In paragraph 5D, in sub-paragraph (1) omit the definition of “the partnership’s last underwriting year” and the definition of “the successor company’s first underwriting year”.
9. In the Schedule heading, at the beginning insert “Lloyd’s underwriters:”.
Jim Harra
Nick Lodge
Two of the Commissioners for Her Majesty’s Revenue and Customs
23rd May 2016
The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 11) . Section 50(1) of that Act provides that in consequence of section 5 a reference in an enactment, instrument or other document to the Commissioners of Inland Revenue (however expressed) shall be taken as a reference to the Commissioners for Her Majesty’s Revenue and Customs.
Schedule 20A was inserted by paragraph 3 of Schedule 25 to the Finance Act 2004 (c. 12) . Paragraphs 5A, 5C and 5D of Schedule 20A were inserted by the Lloyd’s Underwriters (Conversion of Partnerships to Underwriting through Successor Companies) (Tax) Regulations, SI 2014/3133 .