This Clause supplements clause 73 by defining terms and by extending its effect to include the liabilities of individuals who are members of Scottish partnerships which themselves hold interests in a Lloyd’s Members’ Agent Pooling Arrangement (MAPA). It also extends the meaning of payment in clause 73 so that it includes a transfer of assets other than money.

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Subsection (1) defines terms used in this and the previous clause.

Subsection (2) sets out what is meant by a "members’ agent pooling arrangement"

Subsection (3) interprets the meaning of payment of an amount in clause 74 to include payment in money’s worth, the quantum of which is to be taken as the market value of the money’s worth at the time of the payment.

Subsection (4) extends clause 73 so that it has effect in determining the capital gains tax liability of an individual partner in a Scottish limited partnership that is itself a Lloyd's member.

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Syndicate rights are frequently transferred into or out of a MAPA and therefore it is necessary to ensure such transfers are recognised as payments for the purpose of calculating members’ capital gains and losses. This clause does this and also provides that the measure of the payment is taken to be the market value of the rights transferred at the time of the transfer.

An individual can participate in underwriting syndicates at Lloyd’s either by being a member himself or herself or by becoming a partner in a Scottish limited partnership which is itself a member. For capital gains purposes Section 59 of the Taxation of Chargeable Gains Act 1992 provides that tax in respect of gains made on the disposal of partnership assets is to be assessed and charged on the partners separately and not on the partnership. This is the case for partnerships in Scotland - where for other legal purposes a partnership is recognised as a distinct legal entity - as well as elsewhere in the United Kingdom.

The new rules are therefore extended so that they apply not only for the purpose of calculating capital gains and losses of individual members but also to individuals who participate in MAPAs through the medium of a Scottish limited partnership.