LLM5460 - Names: an example of the elements of the taxable profits

The table below shows the constituent elements of the taxable profits of two Names for 2001-02.

- - Name A Name B
- Payment date £ £
AGGREGATE SYNDICATE RESULTS - - -
1998 account syndicates and run-off syndicates to 31 Dec 2000 May 01 50,000 (40,000)
STOP LOSS RECOVERIES - - -
In respect of 1998 account losses or 2000 run-off years of earlier unclosed accounts. Jan 02 - 20,000
SRF TRANSFER/ WITHDRAWAL - - -
From 1998 account commercial profits\nTo meet 1998 account cash calls Oct 01\nSep 01 (20,000) 20,000
ANCILLARY TRUST FUND INCOME - - -
Gilt interest Jun 01 5,000 5,000
- Dec 01 5,000 5,000
OTHER LLOYD’S RELATED INCOME - - -
Final instalment of damages from action for negligence in relation to the 1991 account Feb 01 2,000 2,000
LLOYD’S RELATED EXPENSES - - -
Legal expenses relating to above claim for damages Jun 01 (1,200) (1,200)
Stop loss insurance policy premium for the 2001 account Jan 01 (2,000) (2,000)
CASE I RESULT FOR 2001-02 - 38,800 8,800

Note: For Name B, the stop loss recovery of £20,000 follows a cash call for £40,000. For the purposes of this example, it is assumed that Name B has a policy which pays out any losses above £20,000. The cash call of £20,000 will lead to £20,000 coming out of the SRF, assuming that sufficient funds are available.