Anne Hamilton, UK insurance tax leader in Deloitte’s financial services tax practice, comments on today’s Budget announcement about measures specific to insurance companies.
“The insurance-specific measures announced today were, in the main, wholly expected. For general insurers and Lloyd’s, the announcements on claims equalisation reserves and stop-loss arrangements confirm those already made in December 2011.
“For life insurers, the main interest will be when the Finance Bill is published next week and the amendments to the new life regime, as published in draft in December, can be assessed. Life companies will have been relieved that no changes were announced to pensions tax relief, although they will want to assess the impact of the restrictions announced (from 2013) to premiums into qualifying life policies.
“The cut in mainstream Corporation Tax to 24% from April and then down to 22% from April 2014 will be welcome to the insurance industry and will help competitiveness. More generally, insurers will also be waiting for the publication of the Finance Bill on 29 March to see the detail of the proposed Controlled Foreign Companies regime.”
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