UK insurers face capital haircut on some RT1s

Jasper Cox

November 01, 2018 06:15 pm

Hammond_PA_230x150 — Chancellor of the Exchequer, Philip Hammond, presents the red Budget Box as he departs from 11 Downing Streets to make his way to the Parliament to deliver his 2018 budget announcement, London on October 29, 2018. The Chancellor's budget speech is the last before the official Brexit date next year of March 29, 2019. (Photo by Alberto Pezzali/NurPhoto/Sipa USA) | NurPhoto/SIPA USA/PA Images

UK insurers face being taxed if their restricted tier one (RT1) bonds are written down, according to a measure set out in this week's budget. The Prudential Regulation Authority responded by proposing that firms deduct the tax charge from their own funds, effectively reducing the capital benefit of issuing.

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Jasper Cox