LLM2040 - Syndicate accounts: annual accounting from 1 January 2005: underwriting year accounts

The 2004 Lloyd’s Accounts Regulations ( LLM2030) require the production of underwriting year accounts. These are prepared on an underwriting year basis and are therefore in much the same format as those prepared under the previous three-year accounting system. The underwriting year accounts remain the basis of the syndicate’s tax computations, as they were under traditional three-year accounting. LLM2210 gives an example of underwriting year accounts from 2005 onwards.

The profit or loss of the syndicate underwriting year is declared by the managing agent in April/May of the underwriting year following the closing year. The profit or loss of a Lloyd’s underwriter is that declared in the underwriting year. The declaration basis ( LLM4060 and LLM5290) is unaffected by the move from three-year accounting to annual accounting.

LLM2090 onwards explains the tax treatment of certain items in syndicate accounts.