OLAB's new draft rules

UK Life insurance companies marketing cross-border into Europe could be aided by a proposed relaxation of rules on Overseas Life Assurance Business (OLAB). 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 ...