The Budget contains "a positive message" for the insurance industry but corporation tax is still an issue. That's the view of Andrew Green, partner and tax expert at Mazars.
Green is pleased that the the Chancellor has decided not to change the rules on business asset taper relief or withdraw disclaimers involving tax losses on insurers' acquisitions. Disclaimers allow an insurance company to offset its tax loss on its reserving on being sold.
On a wider perspective, Green is still concerned about the rate of corporation tax in the UK. He says the rate of 30% leaves the UK 16th out of 25 EU countries in terms of corporation tax. Bermuda's zero rate of corporation tax leaves it with a competitive advantage.
Although there was some speculation that the Gordon Brown would lower corporation tax in the Budget, this was “never going to happen”, according to Green.
