Finance Act 1993

10(1)An inspector may, at any time after the end of the closing year for a year of assessment, by notice in writing to a members’ agent require him to deliver to the inspector, on or before the final day determined under sub-paragraph (4) below and as respects each member for whom he acts, a return of the member’s profit or loss for the year of assessment—

(a)containing such information as may be required in pursuance of the notice, and

(b)accompanied by such statements and reports as may be so required, and

(c)in the case of a profit, containing a statement of the amount of tax which would be payable on that profit if income tax were payable on the whole of it at the basic rate in force for the year of assessment.

(2)For the purposes of a return under sub-paragraph (1) above of a member’s profit, there shall be added to that profit—

(a)any amount which in respect of the year of assessment is paid out of his special reserve fund;

(b)in the case of the year 1992-93, 40 per cent. of any relevant depreciation for the underwriting year 1992; and

(c)in the case of the year 1993-94, 15 per cent. of any relevant depreciation for the underwriting year 1993.

(3)For the purposes of a return under sub-paragraph (1) above of a member’s profit, there may be deducted from that profit—

(a)any amount which in respect of the year of assessment is paid into his special reserve fund;

(b)any of the following which is or is intended to be claimed in his return for the year as being deductible from his profit, namely—

(i)any amount in respect of disbursements and expenses wholly and exclusively laid out for the purposes of his underwriting business, and

(ii)any amount which is so deductible by virtue of section 178(1) of this Act;

(c)in the case of the year 1992-93, 40 per cent. of any relevant appreciation for the underwriting year 1992; and

(d)in the case of the year 1993-94, 15 per cent. of any relevant appreciation for the underwriting year 1993.

(4)In sub-paragraph (2) above “relevant depreciation”, in relation to the underwriting year 1992 or 1993, means any amount representing the depreciation in value for that year of assets forming part of a premiums trust fund of the member; and in sub-paragraph (3) above “relevant appreciation” shall be construed accordingly.

(5)The final day for the delivery of any return required by a notice under sub-paragraph (1) above is whichever is the later of—

(a)1st October in the year of assessment following the closing year for the year of assessment; and

(b)the end of the period of three months beginning on the day following that on which the notice was served.

(6)If a members’ agent, having been required by a notice under sub-paragraph (1) above to deliver a return, fails to deliver the return on or before the final day for its delivery, he shall be liable to a penalty equal to the prescribed amount multiplied by the number of days on which the failure continues.

(7)In sub-paragraph (6) above “the prescribed amount” means £60 for each fifty members for whom he acts and in respect of whom there is such a failure (counting any number of such members less than fifty, and any number left over, as fifty).

(8)If a members’ agent fraudulently or negligently delivers an incorrect return under sub-paragraph (1) above, he shall be liable to a penalty not exceeding £3,000 multiplied by the number of members for whom he acts and in respect of whose returns there is such fraud or negligence.

(9)In relation to a return required by a notice under sub-paragraph (1) above—

(a)any reference in sub-paragraph (1) or (5) above to the delivery of the return is a reference to its delivery together with the accompanying documents referred to in sub-paragraph (1) above; and

(b)the reference in sub-paragraph (8) above to the return being incorrect includes a reference to any of those documents being incorrect.