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Readers’ forum: Taxation of Lloyd’s underwriters

03 January 2023
Issue: 4870 / Categories: Forum & Feedback
Dividends

A non-UK resident ‘name’ at Lloyd’s transferred his business to ‘Nomina LLP’ and then he interposed a UK limited liability company ‘Nomina Limited’ above the LLP while retaining 100% of the economic interest in the underwriting.

The name died and left his single share in Nomina Limited to his two adult children who are also non-UK resident as well as being his only executors.

The children did not wish to continue the Lloyd’s business and in 2021 the majority of the syndicate capacity was sold. The gains realised were subject to corporation tax by Nomina Limited in 2021 and in December 2021 it paid a dividend to the estate.

Normally dividend income arising from funds at Lloyd’s is regarded as part of the trading profits and a non-UK resident member is subject to tax on it but this dividend appears to be one step...

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