Corporation Tax Act 2009 section 905

Pre-FA 2002 assets: Lloyd's syndicate capacity

Section 905 provides a special exception to the general rule that the intangible fixed assets regime does not apply to assets created or acquired before 1 April 2002, specifically for Lloyd's syndicate capacity held by corporate members of Lloyd's.

• Lloyd's syndicate capacity rights held by corporate members are brought within the intangible fixed assets regime regardless of when they were acquired, with effect for accounting periods ending on or after 1 April 2002
• For the first accounting period ending on or after 1 April 2002, the tax written down value of the asset must be reduced by all accounting losses previously recognised, whether or not those losses previously gave rise to a tax deduction
• Where syndicate capacity was acquired before the start of the first accounting period ending on or after 1 April 2002 and qualifies as a chargeable intangible asset immediately after that period begins, it is treated as having been a chargeable intangible asset at all times since acquisition, enabling roll-over relief on realisation and reinvestment
• The timing of acquisition for these purposes follows the same rules as apply generally for determining when pre-FA 2002 assets were created or acquired