Syndicate accounts: annual accounting from 1 January 2005: underwriting year accounts
The 2004 Lloyd’s Accounts Regulations (LLM2030) require the production of underwriting year accounts. These are prepared on an underwriting year basis and are therefore in much the same format as those prepared under the previous three-year accounting system. The underwriting year accounts remain the basis of the syndicate’s tax computations, as they were under traditional three-year accounting. LLM2210 gives an example of underwriting year accounts from 2005 onwards.
The profit or loss of the syndicate underwriting year is declared by the managing agent in April/May of the underwriting year following the closing year. The profit or loss of a Lloyd’s underwriter is that declared in the underwriting year. The declaration basis (LLM4060 and LLM5290) is unaffected by the move from three-year accounting to annual accounting.
LLM2090 onwards explains the tax treatment of certain items in syndicate accounts.