Following two consultations in 2016, HM Treasury has published the final rules for a new tax and regulatory framework for insurance linked securities (ILS) business in the UK.
The Risk Transformation Regulations 2017 will come into force on 31 October 2017 and the Risk Transformation (Tax) Regulations 2017 will come into force on the day after the date which they are made.
HM Treasury has also published a document as a response to the consultation. The response includes a background and a summary of responses to the government’s November 2016 consultation and to the earlier March 2016 consultation at Chapter 2. Chapters 3 and 4 discuss the feedback received on the proposed corporate structure for multi-arrangement insurance special purpose vehicles and responses on the proposed tax treatment for ILS. Chapter 5 provides information about the authorisation and supervision of insurance special purpose vehicles.
The Regulations are now final subject to their passage through parliament.