UK insurers ‘in limbo’ as HMRC reviews tax break for perpetual debt

Consultation undermines level playing field between banks and insurers on capital issuance

HMRC building

UK insurers face constraints on their ability to issue perpetual debt instruments under a proposal to redefine their tax status.

Insurers and banks both issue perpetual debt to satisfy regulatory capital requirements. However, Her Majesty's Revenue and Customs (HMRC) has questioned whether such instruments should be legally defined as ‘loan relationships' (debt) when they do not have a fixed maturity date and only grant the holder a right to repayment on liquidation of the issuer. HMRC believes

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The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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