In his Budget speech today the Chancellor referred to making Britain a location of choice for international business and ensuring, through discussion with business, reforms to corporation tax maintain UK competitiveness.
As anticipated, the Budget announcement confirmed HM Revenue & Customs will undertake a consultation with the life insurance industry in the Spring to consider simplification of the current corporation tax regime applicable to life insurance companies. The review will focus on a limited number of aspects aimed at removing barriers to commercial transactions. Peter Wright, tax partner at Deloitte, commenting on the announcement noted that "Today’s news was anticipated following recent discussions with HM Revenue & Customs and is wholly consistent with their Better Regulation agenda. We believe the consultation will be a real opportunity to minimise the administrative burden of the current regime and contribute to the wider agenda to improve the competitive position of the UK life insurance industry".
HM Revenue & Customs have also confirmed they wish to consult on the tax rules applying to general insurance reserves. This reflects previous informal discussions and a recognition that there are a number of options for change.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.