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HR 12: Non-exempt charities: treatment of tax-exempt accumulations
or “Tax rules for charities that lose their registration”
You could also call this:

“Tax rules for Lloyd's of London underwriters on NZ life insurance income”

This section explains how Lloyd’s of London underwriters are treated for tax purposes when they earn money from life insurance premiums in New Zealand.

When you’re an underwriter for Lloyd’s of London and you make money from life insurance premiums in New Zealand, you have to follow some special rules. These rules are about how you pay taxes on this money.

All the underwriters who make money from these premiums in a year are treated as if they were one big group, like one imaginary person. You’re all responsible together for doing what this ‘imaginary person’ needs to do with taxes.

You and the other underwriters need to work out how much taxable income this ‘imaginary person’ made from the premiums. Then, you all need to file one tax return together and pay the right amount of tax on that income.

There’s another rule that might change how you do this, so you should also check section HD 17B to see if it applies to you.

In this section, when it talks about ‘underwriters of Lloyd’s of London’, it means the same thing as just saying ‘Lloyd’s of London’.

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or “Money from older trusts: special tax rules for pre-1989 income”
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Part H Taxation of certain entities
Other entities

HR 13Lloyd’s of London: life insurance

  1. This section applies for the purposes of the obligations imposed by section BB 2 (Main obligations) on underwriters of Lloyd’s of London who derive income (premium income) under section CR 3B (Lloyd’s of London: income from life insurance premiums) in an income year in relation to that income.

  2. All underwriters of Lloyd’s of London who derive premium income in the income year are treated as if they were a notional single person, and are jointly and severally liable for meeting the obligations of the notional single person for the income year.

  3. Subject to section HD 17B (Lloyd’s of London: agents for life insurance), the underwriters of Lloyd’s of London must—

  4. calculate the taxable income that relates to the premium income for the notional single person described in subsection (2) for the corresponding tax year; and
    1. for that tax year, provide a joint return of income and satisfy the income tax liability that relates to the premium income for the notional single person.

      1. In this section, underwriters of Lloyd’s of London has the same meaning as Lloyd’s of London.

      Notes
      • Section HR 13: inserted, on (with effect on 1 April 2017 and applying in relation to a life insurance premium that is derived on or after that date by Lloyd’s of London), by section 138(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).