The Association of British Insurers (ABI) announced that following discussions with financial authorities, the U.K. Government has decided to drop controversial new clauses from the current Finance Bill.
The ABI said it had recently written to “Stephen Timms MP, Financial Secretary to the Treasury and opposition parties raising concerns that clauses in the Finance Bill would lead to the extension of Government powers to alter areas of the taxation of life insurance companies.”
Kate Webster, Head of Taxation at the ABI, commented: “The original proposals would have allowed the Government to amend tax rules for life insurers outside of the Finance Bill process and so avoid proper Parliamentary scrutiny. We are delighted that the Government has decided to drop these clauses from the current Finance Bill. This will give Parliament adequate time to debate any future amendments to the current tax regime and to listen to the concerns of our member companies and their customers.”
A further Finance Bill is expected later this year and the ABI will continue discussions with the Inland Revenue to improve the proposed legislation and will also lobby for desired changes.
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