House of Commons · Written Ministerial Statement
Life Insurance taxation: transfers and reinsurance of long-term business
15 December 2022 · Treasury
Proposed by Andrew Griffith Con Arundel and South Downs
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The Government is addressing tax mismatches in life insurance rules related to re-insurance and transfers of long-term business.
- A measure is being implemented immediately to eliminate a possible tax mismatch for BLAGAB re-insurance transactions.
- Section 92 of the Finance Act 2012 will be amended to permit commercial transactions where substantially all insurance risks are assumed by a re-insurer.
Issue summary
The statement addresses tax mismatches in life insurance rules related to re-insurance and transfers of long-term business, specifically Basic Life Assurance and General Annuity Business (BLAGAB).
Action requested
The Government is announcing a measure that will take immediate effect from today. It includes two components: eliminating a possible tax mismatch for BLAGAB re-insurance transactions and amending section 92 of the Finance Act 2012 to allow commercial transactions where substantially all insurance risks are assumed by a re-insurer. Draft legislation will be published on GOV.UK.
Key facts
- The measure applies to Basic Life Assurance and General Annuity Business (BLAGAB).
- It addresses a potential tax mismatch in life insurance rules involving re-insurance.
- Section 92 of the Finance Act 2012 will be amended.
- Draft legislation will be published on GOV.UK today.