As Lloyd’s is intending to change its practice to allow aligned members to hold capital in their syndicate premium trust funds (PTFs), we are expecting HM Revenue and Customs to seek an amendment of the rules governing the taxation of PTFs. The effect of this would be that any investment income or gains on PTF capital not allocated to a specific year of account, the member capital, will be taxed on a current year basis, so leaving the tax treatment of such income and gains as it is under the current arrangements. Once we have received confirmation of this tax treatment we will provide the Market with a further update.