On 18 February 2014, the Prudential Regulation Authority in the UK (PRA) issued a consultation paper entitled 'Solvency II: recognition of deferred tax'. The paper outlines the PRA's expectations of (re)insurers if/when recognising (a) deferred tax assets for balance sheet purposes and (b) tax effects of the ('1 in 200') stresses when calculating solvency capital requirements, under Solvency II. The paper highlights areas on which firms should focus when determining whether they can take such items into account. Other issues addressed by the paper include PRA expectations of evidence used to support profit projections. The consultation period closes on 14 March 2014.