Lloyd's pushes for lower corporation tax
Insurance giant lobbies government to lower corporate tax in order to stem flow of companies to Bermuda
The government is concerned about the departure of companies from Lloyd’s of
London, and is considering proposals to lower the tax rate for underwriters, the
company said yesterday.
Speaking as the 318-year-old market unveiled a £1.35bn pre-tax profit for the
first half of 2006, Lloyd’s chief executive Richard Ward said he was in
discussions with officials to reduce the the corporation tax rate applicable to
Lloyd’s has been pushing for tax breaks after two of the market’s leading
companies said they would be leaving Lloyd’s for Bermuda to take advanatage of
the island’s 0% corporation tax, the Times reports.
One suggestion which has been mooted is that Lloyd’s adopt a similar regime
to the tonnage tax applied to the shipping industry. This system
requires companies to invest in training and infrastructure in the UK in return
for a lower rate of corporation tax.