HM Treasury and HM Revenue and Customs have published a joint consultation on the possible tax consequences of the expected regulatory changes introduced under Solvency II.
The consultation explores:
- the implications of a proposed move to using company accounts as the basis for computing the trading profits of life companies;
- the potential tax impact of Solvency II on reserves maintained by general insurance companies; and
- the desirability of wider reform to the taxation of life companies.
The deadline for comments on the consultation is 2 June 2010.
For further information: Solvency II and the taxation of insurance companies