LLM8000 - Names: capital gains tax and inheritance tax: contents

The guidance at LLM8010 onwards summarises the main capital gains tax (CGT) and inheritance tax (IHT) issues that affect individual members of Lloyd’s. Detailed guidance on CGT is to be found in the Capital Gains Manual and on inheritance tax in the IHT Manual. The Capital Gains Manual contains some specific material on Lloyd’s at CG24000+. Links to these manuals can be found at LLM10000.

Individual partners in Scottish limited partnerships (SLPs – see LLM6060) and Limited Liability Partnerships (LLPs – see LLM6150) are subject to the same CGT and IHT rules that apply to individual Names.

For corporate members, the profits and gains from assets employed in, or in connection with their underwriting business are taxable under Case I of Schedule D (LLM4050) and no CGT or IHT issues arise. Participators in such companies may be subject to CGT or IHT.

Capital gains issues after 1994 for individual Names mainly relate to the treatment of Lloyd’s syndicate capacity. Until 1993-94, syndicate chargeable gains were chargeable to CGT, but since 1994 they have been included in the Lloyd’s trading result and within the charge to income tax.

The material in this chapter deals with

• CGT on ‘bespoke’ syndicate capacity at LLM8010 onwards;
• CGT on Members’ Agent Pooling Arrangements (MAPAs) at LLM8110 onwards;
• CGT on other assets, mainly ancillary trust funds (ATFs) at (LLM8170) and special reserve funds (SRFs) at (LLM8180);
• the application of the various CGT reliefs at LLM8190 onwards (see LLM6160 for details of the ‘conversion reliefs’ that were introduced in FA 2004);
• the valuation of the Lloyd’s interest and business property relief for IHT at LLM8260 onwards.

1. LLM8010

   Capital gains: Names: syndicate capacity: background
2. LLM8020

   Capital gains: Names: syndicate capacity: acquisition and disposal: consideration
3. LLM8030

   Capital gains: Names: syndicate capacity: acquisition and disposal: incidental costs
4. LLM8040

   Capital gains: Names: syndicate capacity: acquisition and disposal: enhancement expenditure
5. LLM8050

   Capital gains: Names: syndicate capacity: disposals: indexation and taper relief
6. LLM8060

   Capital gains: Names: syndicate capacity: disposals: computation of gain or loss
7. LLM8070

   Capital gains: Names: syndicate capacity: disposals: syndicate mergers
8. LLM8080

   Capital gains: Names: syndicate capacity: disposals: reversion to managing agent
9. LLM8090

   Capital gains: Names: syndicate capacity: disposals: conversion
10. LLM8100

    Capital gains: Names: syndicate capacity: negligible value
11. LLM8110

    Capital gains: Names: syndicate capacity: MAPAs: introduction
12. LLM8120

    Capital gains: Names: syndicate capacity: MAPAs: years of assessment up to and including 1998-99 (1)
13. LLM8130

    Capital gains: Names: syndicate capacity: MAPAs: years of assessment up to and including 1998-99 (2)
14. LLM8140

    Capital gains: Names: syndicate capacity: MAPAs: years of assessment up to and including 1998-99 (3)
15. LLM8150

    Capital gains: Names: syndicate capacity: MAPAs: years of assessment 1999-2000 onwards (1)
16. LLM8160

    Capital gains: Names: syndicate capacity MAPAs: years of assessment 1999-2000 onwards (2)
17. LLM8170

    Capital gains: Names: Ancillary Trust Funds
18. LLM8180

    Capital gains: Names: Special Reserve Funds
19. LLM8190

    Capital gains: Names: reliefs
20. LLM8200

    Capital gains: Names: retirement relief
21. LLM8205

    Entrepreneurs' relief
22. LLM8210

    Capital gains: Names: reinvestment relief
23. LLM8220

    Capital gains: Names: rollover relief
24. LLM8230

    Capital gains: Names: relief for gifts of business assets
25. LLM8240

    Capital gains: Names: indexation and taper relief
26. LLM8250

    Capital gains: Names: non resident Names
27. LLM8260

    Inheritance tax: Names: introduction
28. LLM8270

    Inheritance tax: Names: valuation of the Lloyd’s interest
29. LLM8280

    Inheritance tax: Names: valuation of the Lloyd’s interest: discounts
30. LLM8290

    Inheritance tax: Names: business property relief
31. LLM8300

    Inheritance tax: Names: business property relief: rate of relief
32. LLM8310

    Inheritance tax: Names: business property relief: interavailability