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HMRC internal manual

Lloyd's Manual

Names: loss relief (except terminal losses)

Loss relief claimed against other income of same or previous year: Section 64 ITA 2007

From 1996-97 onwards, Lloyd’s losses can be offset against other income of the year of loss, and against income of the preceding year (ICTA88/S380 and ITA07/S64) in the same way as losses from other trades. As with losses from other trades, claims must be made by 31 January next but one following the year of loss. For example, the time limit for claims to offset Lloyd’s losses of 2003-04 against other income of the preceding year (2002-03) was 31 January 2006. For 1995-96 and earlier, section FA93/S171 (3) applied.

Loss relief claimed against chargeable gains of same or previous year: Section 71 ITA 2007

Names can claim relief for Lloyd’s trading losses against chargeable gains under section FA91/S72 and ITA07/S71. For 1996-97 onwards, the rules for Lloyd’s losses, including the time limits for making claims are the same as for losses from any other trade (explained in BIM75420 - see LLM10000).

Loss relief claimed against future profits of same trade: Section 83 ITA 2007

Names can claim relief under ICTA88/S385 and ITA07/S83 in the same way as other traders. For 1996-97 and subsequent years, the time limit is 5 years after 31 January next following the tax year of the loss.

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Losses in early years of trade: Section 72 ITA 2007

This relief is available for losses sustained in the tax year the trade commences and the three succeeding tax years. No new individual members have been admitted since 2003 (LLM1050). For Names, losses under ICTA88/S381 and ITA/S72 are the losses of the tax year corresponding to the first underwriting account and the losses sustained in the succeeding three calendar years. As the Lloyd’s profits for the first three years do not reflect syndicate results, there are rarely significant Lloyd’s losses sustained in any of the first three years.