Income Tax as Affecting Life Assurance Offices

1946 ◽  
Vol 72 (1) ◽  
pp. 35-78
Author(s):  
A. H. Shrewsbury
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Point Of View ◽  
Sickness Insurance ◽  
Life Assurance ◽  
Tax Legislation ◽  
The United Kingdom ◽  
The Subject ◽  
Insurance Business ◽  
National Defence

‘If there be one point free from obscurity in the Act of 1842 it is this, that the Legislature intended all traders, whether in groceries, annuities or other articles of commerce, to be assessed upon the same footing.’ Lord Watson in The Gresham Life Assurance Society υ. Styles.The main object is to discuss principles and therefore many points of detail will be omitted, however intrinsically interesting they may be. Satisfactory consideration of principles entails reference to all classes of business which involve an actuarial valuation (viz. life assurance and annuity business, sinking fund business and permanent sickness insurance business). Reference will be made to the National Defence Contribution and the Excess Profits Tax, which are based upon income-tax legislation. The subject in mind is the relation of such taxation to insurance business and funds of the classes mentioned, as distinct from other aspects of income tax which an insurance office encounters, and it will be considered solely from the point of view of an office established in the United Kingdom which transacts business only in the United Kingdom. In view of the paper by Messrs S. J. Rowland and F. H. Wales on ‘The Taxation of the Annuity Fund’ (March 1937, J.I.A. Vol. LXVIII), only brief reference will be made to annuity business, and it will be assumed that it is unnecessary, in describing taxation processes, to include explanations or qualifying phrases on account of annuity business.

The Impact of Income Tax on Life Assurance and Annuity Business

1958 ◽  
Vol 84 (2) ◽  
pp. 166-211 ◽  
Author(s):  
C. E. Puckridge
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Ordinary Life ◽  
Life Assurance ◽  
The United Kingdom ◽  
Original Intention ◽  
The Subject ◽  
Insurance Business ◽  
The Impact ◽  
A Company

The original intention of this paper was to discuss the impact of income tax on annuity business only. In practice it was found impossible to discuss the impact on annuity business without at the same time discussing the impact on Life assurance business. A company transacting Ordinary life assurance, Pension annuity and General annuity business is not assessable in respect of three separate businesses; for the purpose of income tax the company conducts only one business, i.e. ‘Life Assurance and Annuity business’. Attention is drawn to this point at the outset because it is considered most important. A student coming freshly to the subject should not be misled into thinking that separate taxable units are involved because in the Income Tax Act, 1952 and the Finance Act, 1956 such terms as ‘annuity fund’ and ‘profits arising to an assurance company from pension annuity business’ are used. It may be noted that in this paper the term ‘fund’ has been avoided wherever possible, because, without precise definition on each occasion that it is used, it is liable to be misleading. It would be impracticable to discuss in one paper all the problems of a composite company which writes all classes of insurance business both at home and overseas. It is, therefore, proposed to consider only the position of a proprietary company which writes Ordinary life assurance and annuity business in the United Kingdom, values its liabilities annually and is taxed on an interest less expenses basis.

scholarly journals Life Office Investments Retrospect and Outlook

1896 ◽  
Vol 3 ◽  
pp. 230-259
Author(s):  
David Paulin
Keyword(s):  
United Kingdom ◽  
Good Fortune ◽  
Life Assurance ◽  
The United Kingdom ◽  
The Subject ◽  
Difficult Subject

On looking over the list of interesting and varied subjects which have been submitted for consideration and discussion in past years to this Society, in the enjoyment of which I have been a constant participant, I find that it is fully sixteen years since I appeared before you in the position which I am glad to occupy again to-night as the reader of a paper.The subject then selected related to the distribution of population in the United Kingdom, and discussed how each district could most effectively be occupied by branches and agencies, so as to bring the beneficent system of Life Assurance within the reach of every one. Since that paper was read, it has been my good fortune to extend my experience from the superintendence of the outside organisation of a great office to other departments of the business of Life Assurance, and especially to give the closest attention in a variety of connections to that most important but most difficult subject, the investment of moneys at the highest rate of interest consistent with the safety of the principal.

The Taxation of Life Assurance Companies in the United Kingdom

1971 ◽  
Vol 20 (01) ◽  
pp. 31-50
Author(s):  
H. M. Stewart ◽  
C. J. Brocksom
Keyword(s):  
United Kingdom ◽  
Current Situation ◽  
Life Assurance ◽  
The United Kingdom ◽  
The Subject ◽  
Basic Facts

When we were asked to present a paper to the Students' Society we were asked to bear in mind the need of the actuarial student for a simple up-to-date paper on this subject. The impossibility of this task hit us immediately—the subject is not itself simple and the currency of the paper is dependent on the whims of Government. However, we write of the current situation as we see it and we shall try to bring out the basic facts of life office taxation whilst at the same time giving, for the benefit of those without first-hand experience, some feeling for the practical as well as the theoretical aspects of the subject.We shall in sections 1–11 of the paper take the reader through the main points concerning the computations of tax for a proprietary life office, then in sections 12–18 give brief notes about some of the complications and finally in an Appendix give a simplified computation.

Aspects of Overseas Life Assurance legislation.

1954 ◽  
Vol 12 (04) ◽  
pp. 193-207
Author(s):  
J. E. Finch
Keyword(s):  
United Kingdom ◽  
Field Staff ◽  
Life Assurance ◽  
The United Kingdom ◽  
The Subject ◽  
The Relationship

The transaction by British offices of life assurance business outside the United Kingdom brings with it problems which have been discussed by W. F. Gardner in his paper to the Institute on ‘Some considerations affecting the transaction of overseas life business’ (J.I.A. 66, 198) and by C. D. Sharp in his paper on ‘British life assurance overseas’ (J.S.S. 9, 2). These papers dealt with the principles to be observed and the practice to be followed in writing life business overseas having regard, inter alia, to local insurance laws. My intention is to consider the laws themselves, to point out some of the differences between them, and to consider to what extent they are consistent with actuarial principles. To keep the subject within practical limits I shall confine myself to Ordinary branch business in the Commonwealth and Egypt. Furthermore, I shall not consider laws which directly control the relationship between insurer and insured, and between insurer and field staff.

Recent developments in the United Kingdom. National report for the United Kingdom to the 24th International Congress of Actuaries, Montreal, 31 May – 5 June 1992

1992 ◽  
Vol 119 (3) ◽  
pp. 569-580
Author(s):  
J. J. McCutcheon ◽  
P. J. Shelley
Keyword(s):  
United Kingdom ◽  
International Congress ◽  
Sickness Insurance ◽  
Future Developments ◽  
Life Assurance ◽  
The United Kingdom ◽  
General Insurance ◽  
Recent Growth ◽  
National Report ◽  
Recent Developments

SummaryThe Report begins by discussing the origins of the actuarial profession in the United Kingdom and the recent growth in its size.The aim of the Report is to describe the more significant recent developments which affect the actuarial profession in the U.K. These developments are discussed under the following headings:Planning,Education,Life assurance,Pensions,General insurance,Relationships with actuaries overseas,Groupe Consultatif,Mortality and sickness insurance statistics,Investment indices.Within each heading there is a discussion of current topics and, where appropriate, of possible future developments.

XXIII. On the error in standards of linear measure, arising from the thickness of the bar on which they are traced

1830 ◽  
Vol 120 ◽  
pp. 359-381
Keyword(s):  
United Kingdom ◽  
Great Britain ◽  
Royal Society ◽  
Linear Dimension ◽  
Point Of View ◽  
Linear Measure ◽  
Weights And Measures ◽  
The United Kingdom ◽  
The Subject ◽  
Source Of Error

In the course of the adjustment and verification of the copies of the Imperial standard yard, destined for the Exchequer, Guildhall, Dublin, and Edinburgh, I discovered a source of error till then, I believe, wholly unsuspected, arising from the thickness of the bar upon the surface of which measures of linear dimension are traced. The difficulties which I experienced, and the remedy which suggested itself upon that occasion, and which was found efficient, are shortly detailed in the account of the construction and adjustment of the new standards of weights and measures of the United Kingdom of Great Britain and Ireland, published in the Philosophical Transactions for 1826. But as the notice there given occupies little more than a single page, and might therefore pass unremarked, I cannot but think that a fact of such importance in inquiries where linear measures are concerned, and which may be sufficient to account for the discrepancies to be found in the experiments of different observers, ought to be placed before the Royal Society in a more pro­minent point of view than that which it at present occupies. I shall, therefore, first extract from the paper alluded to the part to which I refer, and then add an account of such experiments as I have since made on the subject; and describe a scale which I have caused to be constructed so as almost entirely to obviate the source of error of which I am treating.

Consultative Council of Western Powers

1950 ◽  
Vol 4 (3) ◽  
pp. 510-512
Keyword(s):  
United Kingdom ◽  
Point Of View ◽  
The Other ◽  
Common Interest ◽  
Total Expenditure ◽  
The United Kingdom ◽  
Accurate Indication ◽  
The Subject ◽  
The Common ◽  
Common Effort

Eighth SessionThe eighth session of the Consultative Council of Western Powers was held in Brussels on April 16 and 17, 1950. The main business of the meeting was to discuss how the costs of the joint defense projects could be shared. Up to this time each government had paid the costs of its own contingents at the disposal of the organization and all expenditure incurred within its own territory. From the French point of view this had tended to make the common effort relatively more expensive for France than for the other countries while from the United Kingdom point of view, simply fixing the percentages that each country should, bear of the total expenditure would not necessarily be fair, as an airfield built under the treaty plans could in peace time be an advantage to the country in which it was located. This point of view was, in turn, not particularly favored by the Belgians who felt that Belgium had contributed to the common defense proportionally as much as the other powers. The relative amount in each country's budget devoted to the common pool was not an accurate indication as each budget had been drawn up in an entirely different manner, making comparisons difficult. The only thing which counted was the final result: the number of men trained and equipped as well as the material which each country could put on the line; in this regard the Belgians felt they were certainly not lagging behind. It was finally agreed at the meeting that projects of common interest should be paid for in common. The procedure for such payment was to be the subject of proposals submitted to the governments.

The treatment of income tax and expenses in the analysis of surplus

1950 ◽  
Vol 9 (03) ◽  
pp. 156-166
Author(s):  
E. J. W. Dyson
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Substantial Proportion ◽  
Relative Importance ◽  
Very Old ◽  
Ordinary Life ◽  
Life Assurance ◽  
The United Kingdom

These notes are intended to elucidate the treatment of income tax and expenses in the analysis of surplus of a commission-paying office transacting ordinary life assurance and annuity business in the United Kingdom only. The Office is assumed to make an annual valuation for internal purposes, but not necessarily to distribute surplus yearly.It may first be remarked that the analysis of surplus forms both a check on the accuracy of the valuation and a guide to the amounts and relative importance of the various sources of profit and loss. We are here not concerned directly with the first of these functions and only with two items of the second. It must be realized, however, that the analysis is related to the valuation bases, which may depart materially from the bases underlying the office premiums, particularly at a time when conditions are changing rapidly, or if there is a substantial proportion of very old business on the books.

The Development and Incidence of United Kingdom Taxation in Relation to Mutual Life Assurance

1961 ◽  
Vol 27 ◽  
pp. 365-423
Author(s):  
W. Lundie
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Present Position ◽  
Life Assurance ◽  
The United Kingdom ◽  
Tax Laws ◽  
Taxation System ◽  
General Taxation

SynopsisThe paper attempts to show how the present basis of assessment to income tax of mutual life assurance companies has developed by modifying the general taxation system of the United Kingdom to fit special features of life assurance.Section 1 of the paper deals with those aspects of the general tax laws which are relevant to life assurance companies and analyses the position which would arise in the absence of specialised legislation applicable only to life assurance.Section 2 describes the evolution of specialised provisions affecting the taxation of life assurance and the present position is analysed in Section 3. Section 4 contains some suggestions for future legislation to remove anomalies in the present) basis.

scholarly journals Simplicity in Legislative Drafting and Rewriting Tax Legislation

2012 ◽  
Vol 43 (3) ◽  
pp. 517 ◽  
Author(s):  
Ivor Richardson
Keyword(s):  
United Kingdom ◽  
New Zealand ◽  
Income Tax ◽  
Common Law ◽  
Tax System ◽  
Tax Legislation ◽  
The United Kingdom ◽  
Law Commission

The search for simplicity in legislative drafting affects all legislatures. It is also central to the work of the New Zealand Law Commission and of governments in other comparable jurisdictions. Rather than exploring a range of statutes in various jurisdictions, this article focuses on income tax. It does so for two reasons. The first is that income tax has been crucial to the funding of government in common law jurisdictions and to achieving a legislative balance between simplicity and other criteria of an acceptable tax system. The second is that we can draw on three recent projects to rewrite income tax legislation – in Australia, the United Kingdom and New Zealand.

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