LLM3000 - Reinsurance to Close (RITC) and section 107 FA2000
FA00/S107 and the General Insurance Reserves (Tax)
Regulations (SI2001/1757) apply specific tax rules to the taxation
of ‘technical provisions’ of a general insurer.
‘General insurer’ includes a Lloyd’s underwriter.
Details of the main rules and how they operate can be found in
GIM6000+ in the General Insurance Manual (see
LLM10000).
For Lloyd's underwriters, the term ‘technical
provisions’ means the Reinsurance to Close (RITC) premium (
LLM2060) paid (or treated as paid under
Lloyd’s rules), and the provisions for unpaid liabilities of
an open syndicate.
This section of the Lloyd’s Manual explains how the
rules in FA00/S107 are adapted for Lloyd’s members.
For periods prior to the introduction of FA00/S107, there
were special rules on the taxation of the RITC premium (
LLM3210).
| LLM3010 | How the rules are applied to Lloyd's members |
| LLM3020 | Which Lloyd's members must apply the rules (“the 4% rule”) |
| LLM3030 | When the rules apply to Lloyd's members |
| LLM3040 | Why the rules need to be adapted for Lloyd's: what are the technical provisions? |
| LLM3050 | Why the rules need to be adapted for Lloyd's: changes in a member’s share of a syndicate’s business |
| LLM3060 | Why the rules need to be adapted for Lloyd's: changes in a member’s share of a syndicate’s business: examples |
| LLM3070 | Why the rules need to be adapted for Lloyd's: the declarations basis and the “one-year later” rule |
| LLM3080 | How the rules are adapted for Lloyd's (page 1 of 3): regulation 7(1) to (3) |
| LLM3090 | How the rules are adapted for Lloyd's (page 2 of 3): regulation 7(4) to (5) |
| LLM3100 | How the rules are adapted for Lloyd's (page 3 of 3): regulation 7(6) to (11) |
| LLM3110 | Particular difficulties and how to approach them |
| LLM3120 | Further help available: the Lloyd's Calculator |
| LLM3130 | Example of a calculation where a member increases their share of a syndicate’s business (page 1 of 4) |
| LLM3140 | Example of a calculation where a member increases their share of a syndicate’s business (page 2 of 4) |
| LLM3150 | Example of a calculation where a member increases their share of a syndicate’s business (page 3 of 4) |
| LLM3160 | Example of a calculation where a member increases their share of a syndicate’s business (page 4 of 4) |
| LLM3170 | Example of a calculation where a member reduces their share of a syndicate’s business (page 1 of 4) |
| LLM3180 | Example of a calculation where a member reduces their share of a syndicate’s business (page 2 of 4) |
| LLM3190 | Example of a calculation where a member reduces their share of a syndicate’s business (page 3 of 4) |
| LLM3200 | Example of a calculation where a member reduces their share of a syndicate’s business (page 4 of 4) |
| LLM3210 | Reinsurance To Close (RITC): taxation prior to section 107 FA 2000 |
