LLM5460 - Names: an example of the elements of the taxable profits
The table below shows the constituent elements of the taxable profits of two Names for 2001-02.
| - | - | Name A | Name B |
|---|---|---|---|
| - | Payment date | £ | £ |
| AGGREGATE SYNDICATE RESULTS | - | - | - |
| 1998 account syndicates and run-off syndicates to 31 Dec 2000 | May 01 | 50,000 | (40,000) |
| STOP LOSS RECOVERIES | - | - | - |
| In respect of 1998 account losses or 2000 run-off years of earlier unclosed accounts. | Jan 02 | - | 20,000 |
| SRF TRANSFER/ WITHDRAWAL | - | - | - |
| From 1998 account commercial profits\nTo meet 1998 account cash calls | Oct 01\nSep 01 | (20,000) | 20,000 |
| ANCILLARY TRUST FUND INCOME | - | - | - |
| Gilt interest | Jun 01 | 5,000 | 5,000 |
| - | Dec 01 | 5,000 | 5,000 |
| OTHER LLOYD’S RELATED INCOME | - | - | - |
| Final instalment of damages from action for negligence in relation to the 1991 account | Feb 01 | 2,000 | 2,000 |
| LLOYD’S RELATED EXPENSES | - | - | - |
| Legal expenses relating to above claim for damages | Jun 01 | (1,200) | (1,200) |
| Stop loss insurance policy premium for the 2001 account | Jan 01 | (2,000) | (2,000) |
| CASE I RESULT FOR 2001-02 | - | 38,800 | 8,800 |
Note: For Name B, the stop loss recovery of £20,000 follows a cash call for £40,000. For the purposes of this example, it is assumed that Name B has a policy which pays out any losses above £20,000. The cash call of £20,000 will lead to £20,000 coming out of the SRF, assuming that sufficient funds are available.