LLM4000 | Corporate members: contents

This section of the Lloyd’s Manual explains the accounting treatment and tax rules for limited liability companies that are corporate members of Lloyd’s. Under Lloyd’s rules, the term ‘corporate member’ actually applies to all forms of limited liability vehicles at Lloyd’s. These vehicles include ‘Namecos’, Scottish limited partnerships (‘SLPs’), Limited Liability Partnerships (‘LLPs’) and other means by which individual members have ‘converted’ to forms of limited liability underwriting. LLM6000+ deals with such ‘conversion’ vehicles in more detail. In this Chapter ‘corporate member’ is used in the more restricted sense, excluding partnerships.

The material in this section covers the following main areas

• the background to and the accounting rules for corporate members

• the specific legislation in Chapter 5 of Part 4 of Finance Act 1994 on the computation and assessment of profits and losses from underwriting at Lloyd’s by companies

• the application of the rules on intangible fixed assets to syndicate capacity.

See LLM7000+ for the rules on Double Taxation Relief for corporate members.