LLM1010 - Introduction to Lloyd's: background
What is Lloyd바카라 사이트檚?
Lloyd바카라 사이트檚 is not an insurance company. It is a market in which independent insurance underwriters join together in syndicates to sell insurance, mainly through brokers, under the umbrella of the Lloyd바카라 사이트檚 brand name.
Lloyd바카라 사이트檚 began in the seventeenth century when ship owners and merchants, who met in a London coffee house owned by Edward Lloyd, got together to share the risk of losing their ships and cargoes, insuring that no single person could suffer a catastrophic loss. They signed the foot of slips signifying acceptance of part of the risk. As time went by they attracted capital from outsiders to help support this 바카라 사이트渦nderwriting바카라 사이트� activity in a 바카라 사이트渟ubscription바카라 사이트� market, the latter signifying that a series of underwriters will assume shares of the risk. Lloyd바카라 사이트檚 is now the world바카라 사이트檚 leading specialist insurance market, and writes a wide range of insurance business on a worldwide basis. Itis particularly strong on marine and aviation insurance, and in reinsurance, but writes very little life insurance. It was known as Lloyd바카라 사이트檚 of London until 1997 when the name was changed to Lloyd바카라 사이트檚.
The Society of Lloyd바카라 사이트檚 is a statutory corporation incorporated by Lloyd바카라 사이트檚 Act1871. The objects of the Society include 바카라 사이트渢he carrying on by Names of the Society of the business of insurance of every description including guarantee business바카라 사이트�. The Society is an 바카라 사이트榓uthorised person바카라 사이트� under the Financial Service and Markets Act 2000, and has permission to arrange the conduct of insurance business in the market. It does not itself underwrite insurance business.
The Council of Lloyd바카라 사이트檚 (established by Lloyd바카라 사이트檚 Act 1982) is Lloyd바카라 사이트檚 governing body, and has power to make such byelaws as it thinks fit to further the objectsof the Society. The Council provides a framework of regulation, supervision and commercial standards which aims to ensure that underwriters operate in a way that benefits the whole market.
The taxation of Lloyd바카라 사이트檚
Underwriting at Lloyd바카라 사이트檚 is an insurance business, and as such members of Lloyd바카라 사이트檚 are taxed as traders on the basis of their profits or losses from underwriting. The normal rules that apply to the computation of trade profits under Case Iof Schedule D (ICTA88/S18) and in Part 2 of the Income Tax (Trading and Other Income) Act 2005 apply generally to Lloyd바카라 사이트檚 members. However, the Lloyd바카라 사이트檚 market has anumber of unique features and tax rules have to be adapted to reflect these features. The special tax legislation for Lloyd바카라 사이트檚 members is set out in Finance Act 1993 (FA93/S171 to FA93/S184) and Finance Act 1994 (FA94/219 to FA94/S230), and in secondary legislation.
In order to understand the Lloyd바카라 사이트檚 tax rules it is necessary to explain the basic structure of the market, and this is set out in LLM1020 onwards. Terms used in the tax legislation are defined in FA93/S184 and FA94/S230, and these in turn derive from terms and concepts used in the Lloyd바카라 사이트檚 market. LLM1040 onwards explain these terms and concepts.