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Life Insurance taxation: transfers and reinsurance of long-term business

15 December 2022

Proposing MP
Arundel and South Downs
Type
Written Ministerial Statement
Department
Treasury

At a Glance

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.
Assessment & feedback
Summary accuracy