Deloitte comments on implications of finance bill for life companies
30 March 2012
Anne Hamilton, UK insurance tax leader at Deloitte, said:
“The Finance Bill includes the new regime that will apply to life companies from 2013. It taxes trade profits based on the statutory accounts rather than, as now, the regulatory return. The enabling legislation for the transitional measures is intended to ensure that nothing escapes tax and there is no double taxation between the old and new regimes.
“Draft legislation was published for comment on 6 December 2011 and the Finance Bill provisions are broadly in line with that earlier draft. Important changes have been made to address industry concerns about the allocation rules between the new basic life assurance and general annuity business (BLAGAB) and non-BLAGAB categories, taxation of property business and anti-avoidance measures.
“Several technical corrections and clarifications have also been made. The transitional legislation will be supplemented by regulations, which are now not expected to be available in draft until late April and which will be key for many companies.”
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