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Where a Name makes a profit for a year of account, they have the option of making a transfer into their special reserve fund (SRF).

If they makes a loss, there is a mandatory withdrawal of an equivalent amount of funds from their special reserve fund (up to a maximum of the fund value).

The key features of a special reserve fund are¹:

1. Ìý

   (a)ÌýÌýÌýÌý transfers into, and withdrawals from, the fund are made gross (ie not net of basic rate tax)

2. Ìý

   (b)ÌýÌýÌýÌý a transfer can be made into the fund of up to the lesser of 50% of the syndicate profits for the underwriting year, or the amount required to bring the value of the fund to 50% of the Name's overall premium limit for the year of valuation, the previous year² or (where the member did not accept premiums in that year) for the latest underwriting year in which they did so³

3. Ìý

   (c)ÌýÌýÌýÌý transfers are voluntary, and must be made on the earlier of the date