London Transport Insurance (Guernsey) Limited (2)

Meeting: 
MQT on 2014-11-19
Session date: 
November 19, 2014
Reference: 
2014/4298
Question By: 
Stephen Knight
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor
Category: 

Question

How much corporation tax was paid by LTI(G) Ltd in 2013-14 and how much would have been due if it had been domiciled in the UK?

Answer

Answer for London Transport Insurance (Guernsey) Limited (2)

Answer for London Transport Insurance (Guernsey) Limited (2)

Answered By: 
The Mayor

LTIG paid no Corporation Tax in Guernsey as the rate is set at 0 per cent. The potential UK tax liability were LTIG deemed to be UK resident for 13/14, and could not take advantage of the tax losses of group companies, would have been 23 per cent of its profit before tax, which was £825,000. LTIG's profit consists of its surplus on underwriting, plus investment income, less costs.  This assumes that all the costs of the company would qualify for tax relief.  This would generate a tax liability of approximately £190,000.   

LTIG is TfL's principal insurer and requires capital and reserves to allow it to meet known and potential losses, as is required insurance company practice.

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