The ABI have led the international response to the OECD global minimum tax rate proposals, calling for a deferred tax rather than carry-forward approach which would seriously disadvantage many insurance groups. In what is a major change in policy, OECD discussions are now focussed on a modified deferred tax model.
After a year of meetings with HMRC, substantive IPT assessments and extensive data requests issued to members were withdrawn in relation to a location of risk argument advanced by HMRC. The ABI is now representing members on the HM Treasury industry working group reviewing the future treatment of financial services more widely for VAT and IPT.
Following ABI-led industry submissions, HMT/HMRC have accepted that spreading of the transitional adjustment to IFRS 17 for tax purposes is justified which will be important for some groups to both mitigate adverse impacts and prevent double taxation.
The Tax team worked with members and PwC to produce the first Total Tax Contribution report in 7 years, highlighting the enormous contribution of the industry to the UK economy.
