UK PROPOSES EXEMPTING ILS FROM STAMP DUTY

The UK government has published draft legislation that would exempt insurance-linked securities (ILS) from stamp duty taxes. The government introduced legislation in 2017 governing ILS issuance. However, ILS activity in the UK has been sluggish and Bermuda in particular has remained the most favoured destination for the sub-sector. The UK government said it was keen to ensure the UK’s stamp duty and stamp duty reserve tax rules contribute to maintaining the UK’s position as a leading financial services centre. In March the government published a consultation on the tax treatment of ILS securities, with the aim to make the UK a more competitive location for ILS business.