Tax solutions for discontinued insurance business

There are a number of important issues to consider when managing your run-off business. Whatever the course of action, it is vital that any tax implications are considered, so that unnecessary costs are avoided and shareholder value is maximised.

Tailored solutions have been developed to reduce the costs of run-off businesses and release capital, such as schemes of arrangement and Part VII business transfers. Sale of a company and/or portfolio of business remain viable options but whatever your choice of exit route you should consider:

• Any tax implications;
• Advance tax planning to deliver better returns for shareholders; and
• The potential value that tax can add to some of the key strategic and operational decisions made in a run-off business.

We have a specialist team of tax advisers handling cases in the discontinued insurance business sector, working alongside the Corporate liability management/Solutions for discontinued insurance business team. If you would like to discuss your position, please contact Simon De Young or any member of the team listed in the contacts box.