TREV BN 20: Amendments to the General Insurance Reserves (Tax) Regulations
Who is likely to be affected?
1. Companies carrying out general insurance business, and Lloyd's underwriters.
General description of the measures
2. The General Insurance Reserves (Tax) Regulations came into effect for periods of account beginning on or after 1 January 2000. They set out the detailed rules which must be applied in making adjustments to the tax computations of general insurers and Lloyd's underwriters where the provisions made for settling liabilities exceed the discounted cost of settling those liabilities. A number of problems have emerged in the operation of the Regulations, in particular where settlement of claims takes place more than ten years after liabilities were incurred. Amendments to the Regulations will be made to remedy these problems. The details of the proposed changes to the Regulations will be discussed with specialists in the general insurance industry.
Operative date
3. To be decided.
Further advice
4. If you have any questions about this change, please contact Public Enquiry Unit on 020 7438 6420 to 6425.
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