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Accounts

Corporate members prepare and submit accounts to HMRC in the same way as any other company and are required to prepare accounts in accordance with the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations¹.

The accounts comprise a technical account (see example in HMRC Lloyds Manual at LLM4030) and a non-technical account (see example at LLM4040). The technical account includes the corporate member's profit or loss from its syndicate participation, comprising its share of syndicate profits, member level reinsurance, and profits arising from premium trust fund assets. The technical accounts also reflect the company's share of the reinsurance to close premium.

By contrast, the non-technical account includes investment income and gains arising on deposits and other ancillary trust funds and expenses of the underwriting business that do not arise directly from syndicate participation. Any other expenses and receipts of the company are also included in the non-technical account.

Lloyd's corporate members are required to use annual accounting (see E5.605 for background).

Basis of assessment

The tax legislation for corporate Lloyd's