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Opportunities for captives with UK parents from new CFC rules says Aon

LONDON (21 November, 2013) - Aon Global Risk Consulting, the risk management consulting arm of Aon plc (NYSE: AON), today held a joint breakfast seminar with BDO in London to outline the commercial and taxation impacts and opportunities available to captives as a result of the UK controlled foreign companies (CFC) regulatory changes.

Senior executives responsible for risk management and captive operations from FTSE250 companies attended the event to understand the impact of the CFC changes on their captives.  The key issues raised by these changes are:

  • The non-UK income of captives may not be assessed for corporation tax in the UK
  • Profits of EEA-based captives may not be subject to UK tax assessment
  • Distributions of captives will not be subject to tax in the UK
  • Captive owners should carefully consider the domicile, business lines and operating protocols to ensure that their captives deliver maximum value

“The UK CFC changes offer an opportunity for captives to offer some new financial benefits to their owners.  We expect many of our captive clients to consider the structure of their captives, the lines of business in which they participate and, in some cases, whether to commence utilising a captive.

“This is why today’s event is important in helping them understand not only the impact but the opportunity presented by these regulatory changes” said Charles Winter, Head of Risk Finance, Aon Global Risk Consulting.

Angela Foyle, Head of Financial Services Tax, BDO, added: “Whilst there is significant negative public perception in the UK around offshore activities and notwithstanding the introduction of the General Anti Abuse Rule, in fact the new CFC rules together with the falling rate of corporation tax are additional steps towards making the UK a highly favourable regime from which to headquarter international operations. The premise that all profits of CFCs remain outside the UK tax net unless brought within, is a positive and welcome change from the obverse position under the old regime.”

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About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United. Aon GRIP is the company’s Global Risk Insight Platform. 

Media Contact:

Katherine Conway
+44 (0)20 7086 7201

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