Industry welcomes corporation tax cut

The insurance industry has welcomed the government’s announcement in the Autumn Statement that it plans to cut UK corporation tax to 21% from 2014.

ABI director general Otto Thoresen said: “”We strongly welcome the further reduction in the rate of corporation tax. It will undoubtedly improve the competitiveness of the UK, and increase returns for investors in British companies.”

PwC’s insurance tax leader Colin Graham said: “For insurers, the corporate tax reduction to 21% reinforces the chancellor’s open for business agenda. This change will create considerable interest among international groups as insurers review their structure and key locations.”

The ABI’s Thoresen also applauded the government’s commitment in the statement to ensure the UK is an attractive place to come for insurers.

He said: “We welcome the government’s statement that it is keen to encourage and further build the UK’s position as a competitive base for international insurers and we are pleased it recognises the contribution the sector makes in terms of exports and long term investment. The ABI stands ready to work with the government in any way it can to achieve this goal.”