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No Relief On Disposal of Syndicate Capacity By A Name At Lloyd’s

By Mark McLaughlin, July 2015
Background

The appellant carried on a trade as a Name at Lloyd's. In the year ended 31 December 2009, the appellant was an underwriter participating in 18 Lloyd’s syndicates. He sold his capacity in one of those syndicates (syndicate 958) in July 2009 (syndicate capacity became a tradable asset in 1995, except in syndicates being established for the first time). 

The appellant claimed entrepreneurs’ relief in his 2009/10 tax return, in respect of the disposal of that syndicate capacity. However, following an enquiry into his return, HM Revenue and Customs (HMRC) rejected the entrepreneurs’ relief claim. The appellant appealed.

He contended (among other things) that the disposal of his capacity in syndicate 958 was a disposal of ‘part of a business’ for entrepreneurs’ relief purposes (within TCGA 1992, s 169I(2)(a)). It was argued that before the sale, the
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