GIM4010 - Taxation of general insurance: introduction

Until 1996 (when tax relief was introduced for equalisation reserves – GIM7000+) there was very little fiscal legislation on general insurance, and none relating to specific classes of business (apart from an obscure CGT provision relating to the 1967 devaluation in TCGA92/SCH11/PARA14).

This manual is only concerned with general business as defined for regulatory purposes. The taxation of all long term business is dealt with in the Life Assurance Manual.

Some companies that specialise in the provision of healthcare insurance write both long-term business and general business within regulatory classes 1 and 2 (Accident and Sickness). These so-called healthcare composites may account for their general business as though it were long-term business.