Lloyd's said it welcomed the introduction of legislation to remove tax barriers to Lloyd's Names converting to limited liability, announced in today's Budget.
Lloyd's chairman Lord Levene said: “We have worked closely with the government over the past year to develop this legislation and we are pleased that it is now taking steps to introduce it."
The changes to the tax rules will remove one of the last barriers to individual Lloyd's members converting to limited liability underwriting.
As a result, Lloyd's members should get effectively the same tax treatment as already applies to other sole traders when they convert to limited liability.
Following the Budget announcement, Names wishing to transfer to limited liability will be allowed to carry forward unused tax losses from individual underwriting against future income from a Name Co.
They will also be able to transfer their syndicate capacity into a Name Co. without triggering capital gains rules.
