Consultation outcome
Corporation Tax: response to accounting changes for insurance contracts
Read the full outcome
Detail of outcome
The government has published a summary of responses to a consultation on the detailed design of the Corporation Tax changes in response to the new international accounting standard for insurance contracts, IFRS 17. The summary of responses also outlines the design of the regulations that will be laid during Autumn 2022.
Original consultation
Consultation description
The government announced at Autumn Budget 2021 that, for tax purposes, it will spread the transitional impact of IFRS 17 and revoke the requirement for life insurance companies to spread acquisition expenses over 7 years. This consultation will inform the design of the necessary legislation.
This consultation will be of interest to:
- all life insurers and general insurers who report under International Accounting Standards (IAS)
- any non-insurers who report under IAS and who will be affected by IFRS 17 because they issue contracts which meet the IFRS 17 definition of an insurance contract
- all life insurance companies that write Basic Life Assurance and General Annuity Business (BLAGAB) and are required to spread acquisition expenses over 7 years for tax purposes under section 79 of Finance Act 2012
Documents
Updates to this page
Published 30 November 2021Last updated 20 July 2022 + show all updates
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Published the summary of responses to the consultation.
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First published.