ABI sees budget as “mixed bag” for UK insurers
The Association of British Insurers (ABI) has described yesterday’s budget as “a mixed bag for the UK insurance industry”.
Director general, Stephen Haddrill, has noted with pleasure the Government’s decision to accept the ABI’s arguments on foreign profits and the need to raise ISA limits.
However, he says the decision to curtail tax relief, even if only for a minority of pension savers, “sends an alarming message that pension promises can be easily broken”.
Speaking about the dividend exemption on foreign profits, the ABI’s director of taxation, Peter Vipond, believes the move “should help rebuild the UK’s battered reputation as a modern base for global financial service firms” and asks for an early completion of the review of controlled foreign companies’ rules.
According to the ABI, the UK insurance industry pays the third-highest amount of corporation tax of any sector, at £2.9 billion, a situation that has prompted Brit Insurance and Beazley to announce plans to relocate to the Netherlands and Ireland respectively.
Meanwhile, the Association’s director of general insurance and health, Nick Starling, is pleased that government support on trade credit insurance has not tried to “second-guess the judgement of insurers”.
He adds: “By basing its proposals on the risk assessments carried out by insurers, the Government has endorsed the need for the market to judge and price risk.”
Category: ABI News, Insurance News
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