The Life Board's Taxation Working Party, which examines the impact of new developments in the field of life office tax, recently responded to an invitation by Her Majesty's Revenue and Customs (HMRC) for comments on taxation of life assurance companies. This built upon an earlier consultation conducted by HMRC which had led to a desire for a better understanding of some of the issues faced by the insurance industry. While broadly supportive of the objectives highlighted within HMRC's May 2006 consultation on Life Assurance Taxation, the working party has taken the opportunity to submit its views on some of the objectives of the taxation approach and the implications of developments in financial reporting and management of life assurance companies. The working party's response, includes suggestions relating to the allocation of investment income between tax categories  and for simplifications of the tax regime.

Life Board news, November 2007