HMRC internal manual

Lloyd's Manual

LLM3450 - Equalisation reserves for corporate and partnership members: cessations

If the corporate or partnership member leaves the Lloyd’s market, the whole of the equivalent Lloyd’s reserve will be transferred out immediately before the cessation of underwriting (see LLM4230 or LLM5320) and be treated as a receipt of the final year of trading.

In any other situation, the reserves will run down naturally through the operation of the reserve maximum.