General Insurance Article - Mazars, LV=: Industry reacts to Budget 2016

 Loss restriction to 50% for losses bought forward

 Stephen Brown, Director, FS tax team at global accountancy firm Mazars said:“The Chancellor has announced loss restriction to 50% for losses brought forward - this could be an issue for insurers depending on the details. Insurers CERs are reversing under Solvency 2 and some will have been relying on losses brought forward, at least partly, offsetting that issue. However we need to look at the detail of the Chancellor’s plan.”

 LV= responds to IPT increase announced in Budget 2016

 John O’Roarke, Managing Director of LV= said: “While any increase in tax on general insurance is unwelcome, a small increase in Insurance Premium Tax (IPT) of 0.5 per cent aimed specifically at improving flood defences should be viewed as a positive step. No doubt it will certainly come as a relief to many thousands of households and businesses who have been affected by flooding in recent years. However we urge the Treasury to confirm that this move will not set a precedent – i.e. that any future essential infrastructure spending on flood defences will not be paid for by further tax increases on responsible consumers.”