The following two sets of regulations make provision in relation to insurance companies which will be reporting under IFRS 17:
The Finance Act 2022, Part 2 of Schedule 5 (Insurance Contracts: Change in Accounting Standards) (Commencement and Savings Provision) Regulations, SI 2022/1164, bring into force FA 2022 Sch 5 Part 2 which revokes FA 2012 s 79. This removes the requirement for all life insurance companies to spread acquisition costs over seven years for tax purposes. The change will apply for accounting periods of companies beginning on or after 1 January 2023, which is the date from which IFRS 17 becomes mandatory.
The Insurance Contracts (Tax) (Change in Accounting Standards) Regulations, SI 2022/1165, introduce transitional provisions to support insurance companies which adopt IFRS 17 from 1 January 2023. Certain amounts, that would otherwise be subject to corporation tax immediately on the adoption of IFRS 17, are instead brought into tax over a ten-year period. The policy objective is to mitigate the tax consequences of the change in accountancy treatment – particularly to avoid significant cashflow difficulties for insurers. HMRC has also published a Tax Information and Impact Note which explains the background to the changes.
The following two sets of regulations make provision in relation to insurance companies which will be reporting under IFRS 17:
The Finance Act 2022, Part 2 of Schedule 5 (Insurance Contracts: Change in Accounting Standards) (Commencement and Savings Provision) Regulations, SI 2022/1164, bring into force FA 2022 Sch 5 Part 2 which revokes FA 2012 s 79. This removes the requirement for all life insurance companies to spread acquisition costs over seven years for tax purposes. The change will apply for accounting periods of companies beginning on or after 1 January 2023, which is the date from which IFRS 17 becomes mandatory.
The Insurance Contracts (Tax) (Change in Accounting Standards) Regulations, SI 2022/1165, introduce transitional provisions to support insurance companies which adopt IFRS 17 from 1 January 2023. Certain amounts, that would otherwise be subject to corporation tax immediately on the adoption of IFRS 17, are instead brought into tax over a ten-year period. The policy objective is to mitigate the tax consequences of the change in accountancy treatment – particularly to avoid significant cashflow difficulties for insurers. HMRC has also published a Tax Information and Impact Note which explains the background to the changes.
