Corporation Tax Act 2010 section 1151

Lloyd's agents

Section 1151 ensures that Lloyd's members' agents and managing agents acting for non-UK resident corporate members are treated as independent agents, thereby preventing the creation of a UK permanent establishment for those non-UK resident companies.

• Where a UK-based members' agent or managing agent at Lloyd's carries out transactions on behalf of a non-UK resident company, the agent can be treated as an agent of independent status acting in the ordinary course of business.
• Three conditions must all be met: the non-UK resident company must be a corporate member of Lloyd's; the transaction must be part of the company's underwriting business; and the person acting must be doing so in their capacity as members' agent or managing agent of the relevant syndicate.
• If the agent qualifies as independent, the non-UK resident company is not regarded as having a permanent establishment in the UK through that agent, and therefore is not brought within the charge to UK corporation tax on that basis.
• A non-UK resident company is a "member of Lloyd's" if it is a corporate member within the meaning of Chapter 5 of Part 4 of the Finance Act 1994, and the terms "members' agent" and "managing agent" take their meanings from section 230 of that Act.