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HMRC internal manual

Lloyd's Manual

Double taxation relief: individual Names: Regulations

The Lloyd’s Underwriters (Double Taxation Relief) Regulations 1997

For 1996-97 and later years, the rules set out in the Lloyd’s Underwriters (Double Taxation Relief) Regulations 1997 (SI1997/405) provide a simplified regime to enable individual Names to cope with the complexities of claiming relief for foreign tax suffered on Lloyd’s income. These rules also apply to non-corporate partners in SLP and LLP members of Lloyd’s, but not to DTR for corporate (limited company) members of Lloyd’s (see LLM7100), or corporate partners in partnership members of Lloyd’s.

Under these rules profits from membership of Lloyd’s are regarded as a single item of foreign income and all foreign tax paid on that income is treated as foreign tax on that single item of foreign income.


The main feature of the Regulations is the creation of two pools for DTR purposes, one of foreign tax and one of Lloyd’s income. Instead of looking at the profits arising in each overseas country and computing DTR for the tax paid in that country, all foreign tax paid on Lloyd’s income is lumped together in one pool and available for DTR against UK income tax on the full amount of Lloyd’s profits for the year, regardless of the country in which the profits arose. The pooling rules also cater for additional payments of foreign tax related to earlier years (LLM7060).

Names can claim relief for the full amount of the foreign tax in the pool, either by deduction from Lloyd’s profits, or, where available, as tax credit relief against UK tax on Lloyd’s profits. But the pool of each Name is indivisible so a Name may not claim relief for one part by deduction and the balance as tax credit relief.

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Allocation of foreign tax to tax years

The Regulations prescribe to which years within Lloyd’s foreign tax pool particular types of foreign tax are allocated (LLM7040). This is because Lloyd’s related profits are chargeable in different ways and at different times in most foreign jurisdictions compared to the UK. For instance, in the USA, the taxable profits of 2005 would include profit from business written in the 2003, 2004 and 2005 accounts.