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Income Tax Act 2007

Taxation of certain entities - Other entities

HR 13: Lloyd’s of London: life insurance

You could also call this:

"Lloyd's of London life insurance tax rules"

Illustration for Income Tax Act 2007

You need to know about Lloyd's of London and life insurance for tax purposes. When underwriters of Lloyd's of London get income from life insurance premiums, they are treated as one person. They must calculate their taxable income and provide a joint return of income for that tax year, and they are responsible for paying the income tax liability. You are considered a notional single person with the other underwriters of Lloyd's of London when you derive premium income. In this case, underwriters of Lloyd's of London means the same as Lloyd's of London.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS34648.

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Part HTaxation 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).