18 March 2010
Published in: Accounting - tax
UK Treasury consults on tax effects of Solvency II
HM Treasury and HM Revenue & Customs in the UK have jointly published a consultation document, Solvency II and the taxation of insurance companies, which invites comments on two areas as a direct response to Solvency II:
- the technical and transitional issues arising from a move to a new approach, based
on statutory company accounts, to the calculation of trading profits for life
companies; and - the tax consequences of Solvency II on the general insurance industry, and Lloyd's
of London, and in particular the impact on the reserves maintained and the
treatment of claims equalization reserves.
In addition, but not, the document says, in direct response to Solvency II, the consultation takes the opportunity to consider possibilities for wider ranging reform of the life insurance taxation.
Insurance companies, insurance and professional bodies, advisers and the Financial Services Authority are asked to send their responses on the document to HMRC by 2 June 2010.