
1 
These Regulations may be cited as the Lloyd’s Underwriters (Special Reserve Funds) (Amendment) Regulations 1995 and shall come into force on 23rd May 1995.
2 
In these Regulations “the principal Regulations” means the Lloyd’s Underwriters (Special Reserve Funds) Regulations 1995 and “regulation” means a regulation of those Regulations.
3 
In regulation 5(2)(a)(i) for the word “above” there shall be substituted the words “of Schedule 20”.
4 
For regulation 7 there shall be substituted the following regulations—“
7 

(1) For the purposes of the Income Tax Acts and these Regulations—
(a) references in paragraphs 1, 3 to 6, 8 and 10 of Schedule 20 to a member, other than references relating to a member’s special reserve fund, shall be construed, in the circumstances specified in paragraph (2) below and unless the context otherwise requires, as including references to the member’s personal representatives;
(b) references in those paragraphs to a member’s special reserve fund shall be construed, in the circumstances specified in paragraph (2) below and unless the context otherwise requires, as including references to income arising after the death of the member from assets of the fund and retained by the trustees, and profits arising from the investment of that income.
(2) The circumstances specified in this paragraph are where—
(a) the member dies on or after 6th April 1994, and
(b) the member’s personal representatives carry on his underwriting business after his death.
(3) This regulation shall have effect—
(a) in its application to paragraphs 1, 3 to 6 and 8 of Schedule 20, for the year 1994-95 and subsequent years of assessment;
(b) in its application to paragraph 10 of Schedule 20, for the year 1997-98 and subsequent years of assessment.
7A 

(1) Paragraph 9 of Schedule 20 (tax exemption for profits arising from assets of fund) shall apply with the modifications specified in paragraphs (2) and (3) below.
(2) In sub-paragraph (1) after the words “special reserve fund” there shall be inserted the words “or arising after the death of the member from the investment of income retained by the trustees”.
(3) In sub-paragraphs (2) and (3) after the words “special reserve fund” in both places where they occur there shall be inserted the words “or arising after the death of the member as mentioned in sub-paragraph (1) above”.
(4) This regulation shall have effect for the year 1994-95 and subsequent years of assessment.”.
5 

(1) In regulation 8—
(a) in paragraph (1) for “(2)” there shall be substituted “(1A)”;
(b) after paragraph (1) there shall be inserted the following paragraph—“
(1A) In sub-paragraph (2) for the words from “under paragraph 7(1) above” to “assigns” there shall be substituted the words “which is made by the trustees to him or his personal representatives or assigns out of his special reserve fund under paragraph 7(1) above, or otherwise than”.”.
(2) This regulation shall have effect for the year 1994-95 and subsequent years of assessment.
S. C. T. Matheson
C. W. Corlett
Two of the Commissioners of Inland Revenue
2nd May 1995