UK Life insurance companies marketing cross-border into Europe could be aided by a proposed relaxatio...
OLAB operates when a UK company writes business with non-UK-resident policyholders. Where the policy qualifies, no tax is charged on the company for the income and gains building up to meet the benefits payable to policyholders.
The current qualifying rules are drafted to ensure UK residents do not benefit from this treatment. However, there will be consultations with the industry to determine how far regulations will be relaxed.
John Hendry, technical manager at Friends Provident, said: "The budget has dismantled the current definition of OLAB and empowered the Revenue to decide what will and will not be excluded in future. The new structure, we hope, will provide a more flexible and responsive regime."
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