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ABI comments on the Autumn Statement

Huw EvansIn addition to earlier statements on Insurance Premium Tax rises, the Association of British Insurers (ABI) Director General, Huw Evans responds to other measures announced in the Autumn Statement.

On tax deductibility of corporate interest restriction:

“Following significant work from the ABI Tax Team with HMRC and HMT, the ABI welcomes the announcement that “insurance groups will be subject to the rules in the same way as groups in other industry sectors”, which should avoid inappropriate restrictions of interest which was a risk of the original proposals.”

On Salary Sacrifice – impact on GIP and EGL:

“Group Income Protection and Excepted Group Life policies offer a safety net for employees and their families in times of need. We are very disappointed that despite our warnings these vital policies are caught up in the changes to salary sacrifice arrangements. The announcement today runs counter to the positive course set in the recently published Green Paper on Work, Health & Disability and sends mixed signals about Government’s commitment to increasing the financial resilience of individuals and companies.”

On money purchase annual allowance:

“The Government has announced a reduction of the allowance from £10,000pa to £4,000pa from April 2017. We recognise the government’s intentions to balance the need to reduce any abuse of the tax system with the importance of ensuring people needing to rebuild their savings later in life can still do so and we will fully engage with the consultation.”

On Insurance Linked Securities:

“The ABI welcomes the HM Treasury consultation on proposed regulatory framework for Insurance Linked Securities regulations and the PRA and FCA consultation on their approach to the authorisation and supervision to develop a new competitive regime in the UK for ILS vehicles. It is essential that the UK’s approach to administrating the regime is equivalent to that of the jurisdictions with which it will be competing if the market is to flourish.”

On the pension cold calling ban, ABI Director of Policy, Long-term Savings and Protection, Yvonne Braun, said:

‘We are pleased Government is taking action to ban cold calling and combat pension scams. Cowboys must not be allowed anywhere near people’s life savings and these measures will go a long way to achieve this.’

Last updated 29/11/2016