The Government is currently considering changes to the taxation of insurance companies. Change is necessary because of the European Union Solvency II Directive, which is expected to come into force from 1 January 2013.
For life insurers, this also provides an opportunity to develop a simpler regime, more aligned with the commercial position of life companies and the tax basis of companies generally.
For general insurers, the main issue is the treatment of claims equalisation reserves (CERs) after 2012.
The Government has been consulting on these changes since mid 2009. A joint HM Revenue & Customs (HMRC)/HM Treasury (HMT) consultation document (see below) was issued in March 2010.
A Technical Note (see below) was issued on 23 March 2011, which set out a series of decisions affecting both life and general insurance companies.
Consultation is now focusing on detailed measures to implement those decisions.
This page provides links to information published on the HMRC and HMT websites. It will be updated regularly throughout the consultation process.
In April 2011 HMRC issued a second consultation document - Life Insurance Companies: A New Corporate Tax Regime. This document also announced a series of open meetings to discuss aspects of the new regime.
Follow the link below to find the dates of these meetings along with the relevant discussion documents and minutes when they become available.
Taxation of insurance companies - open meetings
Read the consultation document: ‘Life Insurance Companies: A New Corporate Tax Regime’
HMRC has established a joint Life Insurance Working Group to complement wider consultation. Follow the link below to find the terms of reference and membership for this group, and minutes of its meetings.
Read more about the Life Insurance Working Group
Chapter 6 of HMRC’s Technical Note of 23 March 2011 explained the Government’s intention to continue existing informal consultation on the future of claims equalisation reserves. Follow the link below to find documents arising from that process.
Find out more about consultation on CERS
Joint
HMRC/HMT consultation: Solvency II and the Taxation of
Insurance Companies (Opens new window)
Technical Note: Solvency II and the Taxation of Insurance Companies
