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Keeping up with Tax for Insurance - November edition

Welcome to our November edition of Keeping Up with Tax for Insurance. As usual (or at least usual right now!), it’s been another very busy month in UK politics. We had originally intended to make this edition a ‘budget special’ to provide full coverage on what promised to be a fascinating Budget 2019, with a Halloween Brexit already a memory. However, Parliament had other ideas, and the UK is now heading into a general election on 12 December. In the meantime, there's been plenty going on in the world of tax and insurance and we have as usual highlighted key developments. In particular, the recent issue of the GRI reporting standards for tax and further clarifications on the proposed EU public country by country reporting standards may impact significantly on tax (and wider) reporting required/advised for insurance groups. We have summarised the headlines from these measures and steps insurers may wish to take. Otherwise, this edition includes a number of articles on recent or shortly upcoming developments in tax, including further guidance on IR35, the Irish finance bill and a number of developments on stamp taxes. Our articles are as follows: Public CbCR and GRI Standard IR35 - 5 months to go Irish Finance Bill 2019 The life insurance protection gap - is auto-enrolment the answer? Portuguese Stamp Tax new reporting obligations PRA Consultation Paper 26/19 I hope you enjoy the articles that we have put together, and as always please get in touch with me or your PwC team if there is anything that you would like to discuss further, or if you would like to attend one of our events.

Financial reporting considerations of taxing the digital economy

Business structures and the process of value creation have evolved in part through the digitalization of the global economy. Such evolution has posed broad tax challenges which the Organization for Economic Cooperation and Development (OECD) is currently evaluating. Sometimes referred to as BEPS 2.0, the OECD is examining various proposals concerning changes to current profit allocation and nexus rules, as well as a global minimum tax, which were first detailed in a consultation document. Additionally, on 31 May 2019, the OECD released a work plan, Programme of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalisation of the Economy, stating that it expects to provide a long-term, consensus-based solution in 2020. A further document, as well as a public consultation, are expected later this year. In addition to the OECD’s efforts, separate unilateral measures addressing the digitalization of the economy have been introduced by a variety of countries, including France and the United Kingdom.

FS Tax Accounting Seminar - 2 August 2019

Our summer FS tax accounting update covered current affairs topics including an update from half year reporting, IFRS 16 and IFRIC 23. If you would like to discuss any of these areas in more detail, please get in touch with any of the contacts listed in the attached slides or your usual PwC contact.

Hybrid Capital Instruments

As previously trialled in the 2018 Budget, the Taxation of Regulatory Capital Securities Regulations  (“the Regulatory Capital Regulations”) have been revoked and replaced with new tax rules introduced by Finance Act 2019 with effect from 1 January 2019 (the “Hybrid Capital Instrument Rules”). 

The old Regulations allowed banking and insurance groups to obtain certainty as to the deductibility of coupon payments on regulatory instruments.  These Regulations also contain a stamp duty exemption, and also dealt with a number of other issues discussed further below.

Autumn Budget 2018 - Insurance Update

hilip Hammond delivered the Autumn Budget this afternoon, highlighting a number of fiscal measures which will affect both business and personal finances. We have highlighted key issues affecting financial services businesses