Most PTF income is linked to the declaration basis by
FA94/S220 (2)(b)(i). Profits or losses arising from PTF assets are
taken to be those allocated under the rules or practice of Lloyd's
to any previous year or years the profits or losses of which are
declared in the underwriting year.
So, for example, income allocated by the managing agent to
the 2004 syndicate year will be assessed when the results of the
2004 syndicates are assessed. Those results are declared in
April/May 2007. For a member making up its accounts for the year
ended 31 December, the PTF income and gains allocated to 2004 will
therefore be assessed as part of the profits for the accounting
period ended 31 December 2007.
As for syndicate profits, apportionment between accounting
periods will be required if the member makes up its accounts for
any period apart from calendar years, on the basis shown in
LLM4070. This does not mean that the
Riesco figures (
LLM2210) will need to be re- examined -
the results given by that formula simply need to be
time-apportioned.
In applying FA94/S220 the term ‘underwriting
year’ means calendar year. It does not refer in this context
to the year in which a particular syndicate writes business, that
is, to a Lloyd’s Year of Account (YOA).
