Lloyd’s presses for competitive tax breaks

In an effort to remain competitive against rival insurance markets, Lloyd’s
chairman Lord Levene is to lobby government to revamp the insurance tax regime.

Competitors to Lloyd’s have based themselves in countries with friendlier tax
regimes such as Bermuda and Ireland, and Lloyd’s has lost out as a result, the
Financial Times reports.

Lord Levene is expected to push for a review of taxation in the UK. Lloyd’s
is already revamping its outdated business processed to become more competitive,
but without a change to the way the market is taxed many fear that the changes
will be ineffective.

In Ireland and Bermuda corporation tax rates for insurers are almost zero,
but UK insurers have to pay tax of 30%.

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