Context
Following the Chancellor’s Budget Statement on Wednesday 15th March 2023, the ABI comments on measures related to the insurance and long-term savings industry.
Key points to note
Mervyn Skeet, ABI Interim Director of General Insurance Policy has stated: “We’ve consistently warned that rushing the implementation of the OECD tax reforms risks UK insurers being disadvantaged. Introducing rules which could differ from other jurisdictions, and doing so before others, will only increase administrative burden and could have a significant impact on the competitiveness of UK businesses.
“It is disappointing to see that Pillar Two will be included in the Finance Bill. In order to work properly, the reforms should be thoroughly scrutinised in parliament. The UK Government should be focusing its efforts on ensuring work at the OECD is completed and agreed, and the reforms are workable on a global level. Only if countries implement the same changes at the same time can the reforms achieve their core purpose.”
Next actions
None – for information and awareness.