Insurers will quit UK unless tax regime is reformed
ABI's insurance survey of FDs and chief execs reveals deep concerns about the UK's tax regime
Insurance FDs and chief executives have warned that the number of insurance
companies in the UK will fall if the tax system is unchanged over the next five
years.
A survey by the ABI found that 80% of insurance FDs and chiefs expected the
number of companies in the industry based in the UK would fall unless tax rules
were altered.
The
ABI’s
chief economist Rebecca Driver stated in a letter to
the
Telegraph that Lord Turner’s recent comments warning the FSA
to be “wary” about focusing on UK competitiveness as a major aim, was ”
dangerous”.
“One way or another we all rely on financial services to help us run our
lives. The availability and quality of the products we need depends on the
sector’s ability to attract capital from around the world,” said Driver.
The ABI recommends reforming the controlled foreign company tax rules, and
introducing a corporation tax exemption for foreign branches, both moves it said
would encourage capital into the UK.
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