LLM3330 - Reinsurance to close (RITC) and technical provisions: taxation following repeal of section 107 FA 2000: the appropriate amount: application to Lloyd鈥檚 syndicates: amendment of the administrative regulations for enforcement purposes
There are two separate issues which affect the enforcement powers under FA07/SCH11/PARA2 as it affects reinsurance to close and provisions for Lloyd鈥檚 syndicates and their members. The first is the addition by SI2009/2889 of a new regulation 5A to the Lloyd鈥檚 Underwriters (Tax) Regulations 2005, SI2005/3338, which applies the provisions of FA07/SCH11/PARA2 to syndicate managing agents. The effect is to enable HMRC to require syndicate managing agents to provide a report relating to the amount of provisions (or reinsurance to close) stated in the syndicate accounts. SI2009/2889 applies to FA07/SCH11/PARA2 as amended following the HMRC Powers Review by paragraph 53 of the Schedule to SI2009/2035.
The second issue is the appearance of Lloyd鈥檚 managing agents in the Table added by FA09/SCH48/PARA14 at FA08/SCH36/PARA61A. This makes syndicate managing agents 鈥榠nvolved third parties鈥� in the terms of FA08/SCH36/PARA34A added by FA09/SCH48/PARA11. It means that third party notices can be served on the managing agent in relation to individual syndicate members鈥� RITC and provisions without Tribunal approval. This provision operates from an appointed day, expected to be 1 April 2010.