This week, UK Member’s of Parliament (MP’s) approved the passage of new Government legislation designed to exempt insurance-linked securities (ILS) issuance and reinsurance transformer vehicle issued notes from any Stamp Duty taxes, to promote ILS activity in the United Kingdom.
The move saw MP’s from both sides of the House agreeing to pass the legislation, which would allow the Government to ensure Stamp Duty and Stamp Duty Reserve Tax (SDRT) does not add cost to securitisations and insurance-linked securities (ILS) arrangements, a final step in the Clause 67 ascension via the Finance Bill 2021-22.
As we’ve been explaining in regular updates, the UK Government consulted on the tax treatment of insurance-linked securities (ILS) in a bid to enhance the competitiveness of the UK ILS regulatory and tax regime last year.
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