LLM3100 - Reinsurance to close (RITC) and technical provisions: section 107 FA2000: adaptations for Lloyd's members (page 3 of 3): regulation 7(6) to (11) of the GI reserves tax Regulations
Regulation 7(6)
Regulation 7(6) was repealed by SI2003/2862.
It previously amended the rules for general tax rules dealing foreign currency elections in Finance Act 1993 by limiting the elections a Lloyd바카라 사이트™s member could make to one of the prescribed Lloyd바카라 사이트™s currencies. Foreign currency elections were removed in the 2003 amendments to the Finance Act 1993 and regulation 7(6) was repealed.
Elections made for periods of account ending before 5 December 2003 (the date that the amendment took effect) are still valid.
Regulation 7(7) and 7(8)
Regulation 7(7) omits the reference to the 바카라 사이트˜reinsurer syndicate바카라 사이트™ in regulation 7(5)(b) so that the 바카라 사이트™one-year later바카라 사이트™ rule in regulation 7(5) applied to run-off syndicates.
Regulation 7(8) applied the 4% rule to run-off syndicates.
Regulation 7(9) and 7(10)
Regulation 7(9) and 7(10) applied special rules for connected companies.
If company A has 10% of a syndicate바카라 사이트™s capacity and connected company B has none, and the percentages are reversed in the following year, both were treated as having a 10% share of the syndicate in both years. The RITC paid and received by both is wholly subject to the FA00/S107 rules.
For the purposes of the transfer of business rules in regulation 4 of SI2001/1757, company B was treated as having taken over the liabilities.
Regulation 7(11)
Regulation 7(11) requires a managing agent to pass on the details a member needs to carry out the calculations required by the rules. This will include details of the amount of claims and RITC paid by a syndicate for each underwriting year.