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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: Insurance Premium Tax: Who is liable to pay the debt? Lloyds Syndicates

The Corporation of Lloyds is not an insurer. Lloyds is an insurance marketplace within which insurers operate. The insurers are members of Lloyds otherwise known as “names”.

“Names” traditionally have been individuals, however since 1994 Limited Companies known as “corporate names”, entered the market. The “names” organise into syndicates to provide insurance cover.

A “name” is an individual who, or a limited company that, pledges capital to back-up their underwriting activities. Corporate syndicates are exclusively syndicates whose members are corporate “names”.

Lloyds syndicates are unincorporated associations.

The syndicate registers for IPT, not the “names”, but the “names” are jointly and severally liable for tax due from the syndicate.

Generally, Lloyds syndicates subscribe to a scheme where Lloyds prepare and submit a consolidated IPT return. Lloyds motor insurance syndicates register for IPT in their own right.


Regulation 9 (1) and (2) of the Insurance Premium Tax Regulations 1994, provide:

“9(1) Anything required to be done by or under the Act (whether by these Regulations or otherwise) by or on behalf of a syndicate of underwriting members of Lloyds shall be the joint and several responsibility of the persons mentioned in paragraph (2) below; but if it is done by any of those persons it shall be sufficient compliance with any such requirement.

(2) The persons are-

(a) the underwriting members of the syndicate;

(b) the managing agent of the syndicate; and

(c) as regards any accounting period for which it is required by paragraph (3) below to act as the syndicate’s representative, Lloyds.”