Tax Notable success in taxing times Throughout the pandemic, the ABI has continued to work hard for its members and, in the past year, has cut through on key issues including the global minimum tax rate, IPT and IFRS 17 while shining a light on the industrys contribution to the UK economy Influencing policy change The ABI has led the international response to the OECD global minimum tax rate proposals, calling for a deferred tax rather than carry-forward approach, which would seriously disadvantage many insurance groups. In what is a major change in policy, OECD discussions are now focused on a modified deferred tax model. After a year of meetings with HMRC, substantive Insurance Premium Tax (IPT) assessments and extensive data requests issued to members were withdrawn in relation to a location of risk argument advanced by HMRC. We are now representing members on the HM Treasury industry working group reviewing the future treatment of financial services more widely for VAT and IPT. The ABI is now representing members on the HM Treasury industry working group reviewing the future treatment of financial services more widely for VAT and IPT Following ABI-led industry submissions, HMT/HMRC have accepted that spreading of the transitional adjustment to IFRS 17 for tax purposes is justified, which will be important for some groups to mitigate adverse impacts and prevent double taxation. We worked with members and PwC to produce the first Total Tax Contribution report in seven years, highlighting the enormous contribution of the industry to the UK economy. Taking the lead internationally We have continued to lead the international response to the OECD/G20 two-pillar digital tax proposals. We are confident that we have persuaded the OECD that regulated insurance companies can treat wholly owned funds as transparent and not be subject to tax at the fund level under Pillar Two On Pillar One, we have worked with the OECD secretariat to ensure financial services continue to be excluded. On Pillar Two, we have been at the forefront in moving the OECD position to use deferred tax to address timing differences We are confident that we have persuaded the OECD that regulated insurance companies can treat wholly owned funds as transparent and not be subject to tax at the fund level under Pillar Two. HMRC has issued a consultation on spreading the transitional adjustment to IFRS 17 for tax purposes, which reflects the ABIs preferred approach. The ABI continues to represent members on the HM Treasury industry working group, reviewing the future treatment of financial services more widely for VAT and IPT.