Tax insurance crackdown backdated
The government is to backdate its life insurance tax crackdown to take effect before the next Finance Bill, which implements it, comes into force.
Artificial transactions such as intra-group transfers of assets and bed & breakfasting will be targeted from 23 December 2002.
But changes affecting case 1 profits, artificial transfers of business proposals and overseas life insurance companies will take affect from 1 January 2003.
The crackdown was reported to parliament last week by paymaster generalDawn Primarolo in a written answer to a question in the Commons.