New rules for taxing a life assurance company:
2013 and beyond

The new rules for taxing life insurance companies as published in the Finance Bill, and effective from 1 January 2013, represent a fundamental rewrite of the life insurance taxation regime.

Change to the calculation of tax for life insurance companies has been necessitated by the impending removal of the FSA Return on the introduction of Solvency II, as the FSA Return presently forms the starting point and basis for the corporation tax computations for life insurers. Originally the changes were intended to coincide with Solvency II coming into force, but are going ahead for 2013 despite the delays in Solvency II’s implementation.