Taxation of Chargeable Gains Act 1992 Schedule 2 paragraph 7

Underwriters

Schedule 2 paragraph 7 prevents Lloyd's underwriters from using the pooling election (under paragraph 4) for quoted securities held in certain underwriting funds that are subject to special tax rules under section 206.

• The pooling election available under paragraph 4 of Schedule 2 does not apply to quoted securities held by Lloyd's underwriters in specific fund types
• The excluded funds are the underwriter's premiums trust fund, premiums trust fund deposits, and personal reserves
• This restriction applies only where the securities form part of funds covered by the special underwriter provisions in section 206
• The effect is that these securities must continue to be dealt with under the normal rules for assets held on 6th April 1965, rather than being pooled