I am researching some advice for a client on Lloyd’s underwriting and came across this comment in LLM5230 (HMRC Lloyd’s manual). Has anyone come across this or had any guidance on the need to complete the TRS?
When a Name opens an SRF, they sign a trust deed which establishes a beneficial trust of which the Society of Lloyd’s is the sole trustee. Lloyd’s Members’ Funds Department is responsible for the administration of all SRFs, which includes computing movements within each fund and managing and controlling the records of funds held.
Transfers into and out of the fund must be made in cash from the premium trust fund, except where assets were transferred to a new fund from an old, and when withdrawals are made on cessation
After 6 months of waiting and chasing HMRC have issued the following regarding TRS for SRF:
For any particular trust the responsibility for determining registration lies with the trustees of the trust. HMRC does not consider that special reserve funds (SRFs) with no UK tax liabilities are liable for registration on TRS.
On the basis that this notification is on the agent portal, I would think that it would be a ‘reasonable excuse’ if nothing else. they slightly have the ‘get out’ of saying it’s up to trustees but then to say they do not consider it registerable - then it should be ok.
I was thinking as more of a general principle! (and being a little facetious) given trustees do not actually have any discretion and HMRC are only trying to pass the buck because the legislation contains so many ambiguities.