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Claims equalisation reserves decision to cost UK insurance industry £500m |
Despite significant efforts by industry, the Association of British Insurers and Lloyd's, HMRC have confirmed their intention to repeal legislation that allowed a tax deduction for claims equalisation reserves in general insurers and Lloyd's members. Colin Graham, UK insurance tax leader at PwC, said:
“This could put UK-based insurers at a competitive disadvantage to insurers based in some other countries at a time when the Government is seeking to attract industry back to the UK. Relief already claimed will reverse, costing the industry £500m over six years from 2014 onwards.” |
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