The Taxation of Annuity Funds.

1951 ◽  
Vol 10 (02) ◽  
pp. 65-85
Author(s):  
G. V. Bayley
Keyword(s):  
Income Tax ◽  
Presidential Address ◽  
Present System ◽  
Basic Principles ◽  
Life Assurance ◽  
New Business ◽  
Method Of Solution ◽  
The Subject ◽  
The Moment ◽  
Life Annuities

‘Income tax is another subject on which it is difficult for me to speak freely, but I cannot refrain from noting that the general taxation position, as it now affects life assurance and pensions business, has given rise to serious anomalies: …one has only to consider…that the terms quoted by offices for the purchase of life annuities vary to a quite remarkable extent, depending on the distribution of the company's business between various funds, as it exists at the moment, and the consequential incidence of tax;…’(J.I.A.Vol.LXXV, p. 7.)With these words Sir George Maddex, in his Presidential Address, directed our attention to the present system of taxation of annuity funds. M. E. Ogborn (1), on 27 October 1947, touched on the subject of uneven incidence of tax upon differing funds, and some uneasiness about the consequences was manifest in the discussion on that paper.Much has been written in recent years upon the general subject of taxation of annuities. S. J. Rowland and F. H. Wales (2), A. H. Shrewsbury (3), and M. E. Ogborn (1) have fully described and commented upon the present method. Relatively little attention, however, has been devoted to the effects of the system upon annuity funds, probably because it is only recently that we have become aware of its full implications. There is some need therefore to review the consequences and to investigate more closely the actuarial problems which follow.It is proposed here to analyse the effects of the system and, proceeding from some simple basic principles, to point to a method of solution of the actuarial problems connected with valuation, investment and the terms for new business and withdrawals.

The taxation of annuity funds

1950 ◽  
Vol 76 (3) ◽  
pp. 237-252
Author(s):  
G. V. Bayley
Keyword(s):  
Income Tax ◽  
Presidential Address ◽  
Present System ◽  
Life Assurance ◽  
The Subject ◽  
The Moment ◽  
Life Annuities ◽  
General Taxation

With these words Sir George Maddex, in his Presidential Address, directed our attention to the present system of taxation of annuity funds. M. E. Ogborn, on 27 October 1947, touched on the subject of uneven incidence of tax upon differing funds, and some uneasiness about the consequences was manifest in the discussion on that paper.‘Income tax is another subject on which it is difficult for me to speak freely, but I cannot refrain from noting that the general taxation position, as it now affects life assurance and pensions business, has given rise to serious anomalies: ...one has only to consider... that the terms quoted by offices for the purchase of life annuities vary to a quite remarkable extent, depending on the distribution of the company's business between various funds, as it exists at the moment, and the consequential incidence of tax;...’

Presidential Address delivered at the Annual Meeting of the Medico-Psychological Association, July 25, 1889

1889 ◽  
Vol 35 (151) ◽  
pp. 293-315 ◽  
Author(s):  
H. Hayes Newington
Keyword(s):  
Annual Meeting ◽  
Great Increase ◽  
Presidential Address ◽  
Hospital Treatment ◽  
Present System ◽  
Close Attention ◽  
The Subject

Gentlemen,—I have chosen as the subject of this address a question which, though it is almost as old as the present system of treating the insane, has been revivified with so much vigour as to demand at our hands the close attention which we should feel bound to give to it had it been entirely new. I am about to offer you some remarks on what is called “Hospital treatment for recent and curable cases of insanity.” The reintroduction of this question is undoubtedly due to the necessity for the consideration of the great increase of the insane population; and it is appropriate in point of time; indeed, the time has been determined by the change in the composition of those bodies whose sanction and help are required for any new departure in this direction.

Income Tax as Affecting Life Assurance Offices

1946 ◽  
Vol 72 (1) ◽  
pp. 35-78
Author(s):  
A. H. Shrewsbury
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Point Of View ◽  
Sickness Insurance ◽  
Life Assurance ◽  
Tax Legislation ◽  
The United Kingdom ◽  
The Subject ◽  
Insurance Business ◽  
National Defence

‘If there be one point free from obscurity in the Act of 1842 it is this, that the Legislature intended all traders, whether in groceries, annuities or other articles of commerce, to be assessed upon the same footing.’ Lord Watson in The Gresham Life Assurance Society υ. Styles.The main object is to discuss principles and therefore many points of detail will be omitted, however intrinsically interesting they may be. Satisfactory consideration of principles entails reference to all classes of business which involve an actuarial valuation (viz. life assurance and annuity business, sinking fund business and permanent sickness insurance business). Reference will be made to the National Defence Contribution and the Excess Profits Tax, which are based upon income-tax legislation. The subject in mind is the relation of such taxation to insurance business and funds of the classes mentioned, as distinct from other aspects of income tax which an insurance office encounters, and it will be considered solely from the point of view of an office established in the United Kingdom which transacts business only in the United Kingdom. In view of the paper by Messrs S. J. Rowland and F. H. Wales on ‘The Taxation of the Annuity Fund’ (March 1937, J.I.A. Vol. LXVIII), only brief reference will be made to annuity business, and it will be assumed that it is unnecessary, in describing taxation processes, to include explanations or qualifying phrases on account of annuity business.

Amalgamations of Life Assurance Companies

1931 ◽  
Vol 62 (2) ◽  
pp. 276-312
Author(s):  
K. J. Britt
Keyword(s):  
Presidential Address ◽  
Policy And Practice ◽  
Life Assurance ◽  
The Subject ◽  
Legal Character

In his Presidential Address delivered in November 1910 Sir Gerald Ryan discussed at some length the policy and practice of amalgamation (J.I.A. Vol. XLV, p. 12), and went on to suggest that a useful purpose would be served if a paper were written by one of our Fellows on the theme of “Assurance Amalgamations.” Papers on the subject are to be found in the early numbers of the Journal, but as the last one dealing solely with amalgamations was written in 1858 it may be of interest to members if the matter is examined again in the light of the happenings in recent years. Other references have appeared in Presidential Addresses and papers of a legal character. Some of these expressed the opinion that the requirements of the Assurance Companies Act, 1870, were unworkable. For many years amalgamations of life offices have been governed by the Assurance Companies Act, 1909 (hereafter referred to as the 1909 Act), but it can scarcely be said that its requirements are easier to comply with than those of the 1870 Act. It is not surprising, therefore, to find that many of the transactions of the nature of amalgamations in recent years have been carried through by other means.

scholarly journals The Mortality among Assured Lives viewed in relation to the Sums at Risk

1891 ◽  
Vol 2 ◽  
pp. 227-261
Author(s):  
George C. Stenhouse
Keyword(s):  
At Risk ◽  
Primary Data ◽  
Life Assurance ◽  
The Future ◽  
Gradual Development ◽  
The Subject ◽  
Life Annuities

What was probably the beginning of knowledge in this country in regard to the subject of Life Annuities and Assurance was the publication, in 1661, by John Graunt, of his Natural and Political Observations on the Bills of Mortality. In that publication we have no doubt the primary data on which the business of Life Assurance is founded. By the gradual development and extension of that business, it soon came to be recognised that in all calculations connected with the subject it was needful to proceed on a sound fundamental basis. For not only was it seen to be necessary that the affairs of an institution conducting such business required to be administered for the immediate benefit of those concerned; but it was also observed that there were many prospective liabilities, and that therefore it required to be built on such a solid and substantial foundation as to be able to meet all obligations in the future. This is appreciated by all who are in any way interested in Assurance.

Some Considerations on the Government Life Annuities and Life Assurances Bill

1864 ◽  
Vol 12 (1) ◽  
pp. 3-32 ◽  
Author(s):  
Marcus N. Adler
Keyword(s):  
Select Committee ◽  
The Public ◽  
Life Assurance ◽  
The Subject ◽  
Friendly Societies ◽  
The Government ◽  
Life Annuities

The measure by which the Chancellor of the Exchequer proposes to extend the benefits of life assurance and annuities to the nation at large has now been before the public some time. Few Bills have of late attracted so much attention, and have been so earnestly discussed by all classes, as this. But beyond what was elicited at an interview that took place between the Chancellor of the Exchequer and the Actuaries of several Offices, and some passing remarks on the subject made at the last meeting of the Institute of Actuaries, when we had the advantage of hearing Mr. Samuel Brown's excellent paper on Friendly Societies, the public have as yet had no opportunity of hearing the opinions of those, who after all are best able to judge. It now appears, that the Chancellor of the Exchequer is opposed to a general inquiry and the calling for “persons, papers and records” by the Select Committee, to whom the Bill has been referred, and it therefore becomes all the more desirable that the merits of the proposition of the Chancellor should be calmly and impartially discussed by the members of this Institute.

Canadian Mortgages Regarded as a Field for the Investment of the Funds of British Life Assurance Companies, with Some General Notes on Canadian Indebtedness

1915 ◽  
Vol 49 (1) ◽  
pp. 33-89
Author(s):  
Arthur Digby Besant
Keyword(s):  
Academic Interest ◽  
Distant Future ◽  
The Past ◽  
Life Assurance ◽  
Financial Conditions ◽  
The Subject ◽  
The Moment ◽  
Past Summer

In the course of the past summer I visited Canada, partly with a view to investigating upon the spot the opportunities which the Dominion might afford for mortgage investments, and partly in order to gain, at first hand, knowledge of the general financial conditions of the country.The subject is one of great importance, and although the outbreak of war may have rendered all questions of new investments of purely academic interest for the moment, yet I hope that the following notes will be of interest to the Institute, and may be turned to some practical use in a not distant future.

Expenditure in Life Assurance Offices

1889 ◽  
Vol 28 (2) ◽  
pp. 136-151
Author(s):  
H. R. Harding ◽  
T. Y. Strachan
Keyword(s):  
Life Insurance ◽  
Individual Life ◽  
Life Assurance ◽  
New Business ◽  
Business Profit ◽  
The Subject

A paper bearing the title “Life Offices:—in reference to Expenses, New Business, Profit divided, and Competition”, was read before the Institute at its Ordinary Sessional Meeting on 25 March last, and was followed by a discussion, of which a summary is appended hereto.From the nature of the subject it was necessary that the author should quote from the Board of Trade Returns of the various life offices, and these quotations being in such a form as to enable anyone versed in the business of life insurance to identify in various instances the companies to which they related, it was considered by the Council of the Institute desirable that, acting in conformity with its practice not to give countenance to criticisms upon the affairs of individual life offices, only an abstract of the leading features of the paper should be given instead of printing the paper and tables in extenso.

The Impact of Income Tax on Life Assurance and Annuity Business

1958 ◽  
Vol 84 (2) ◽  
pp. 166-211 ◽  
Author(s):  
C. E. Puckridge
Keyword(s):  
United Kingdom ◽  
Income Tax ◽  
Ordinary Life ◽  
Life Assurance ◽  
The United Kingdom ◽  
Original Intention ◽  
The Subject ◽  
Insurance Business ◽  
The Impact ◽  
A Company

The original intention of this paper was to discuss the impact of income tax on annuity business only. In practice it was found impossible to discuss the impact on annuity business without at the same time discussing the impact on Life assurance business. A company transacting Ordinary life assurance, Pension annuity and General annuity business is not assessable in respect of three separate businesses; for the purpose of income tax the company conducts only one business, i.e. ‘Life Assurance and Annuity business’. Attention is drawn to this point at the outset because it is considered most important. A student coming freshly to the subject should not be misled into thinking that separate taxable units are involved because in the Income Tax Act, 1952 and the Finance Act, 1956 such terms as ‘annuity fund’ and ‘profits arising to an assurance company from pension annuity business’ are used. It may be noted that in this paper the term ‘fund’ has been avoided wherever possible, because, without precise definition on each occasion that it is used, it is liable to be misleading. It would be impracticable to discuss in one paper all the problems of a composite company which writes all classes of insurance business both at home and overseas. It is, therefore, proposed to consider only the position of a proprietary company which writes Ordinary life assurance and annuity business in the United Kingdom, values its liabilities annually and is taxed on an interest less expenses basis.

scholarly journals On the Construction and Use of Commutation Tables for Calculating the Values of Benefits depending on Life Contingencies

1862 ◽  
Vol 10 (2) ◽  
pp. 84-104
Author(s):  
Peter Gray
Keyword(s):  
Royal Society ◽  
Human Life ◽  
Large Collection ◽  
Useful Knowledge ◽  
Life Assurance ◽  
The Subject ◽  
Life Annuities

It is to a Mr. George Barrett, of whom nothing besides is publicly known, that we are indebted for the principle of the Commutation Tables, and for the method of computing, by means of them, the values of benefits depending on the contingencies of human life. The method was first introduced to public notice, after it had been refused a place in the Transactions of the Royal Society, by Mr. Baily, in an Appendix to the second edition of his Doctrine of Life Annuities, published in 1813. Mr. Griffith Davies, in a work on life contingencies, published in 1825, by certain additions to the tables, and alterations in their structure, according to Professor De Morgan, “increased the utility and extended the power of the method to an extent of which the inventor had not the least idea.” Mr. Barrett's method was also briefly noticed in the Appendix to Mr. Babbage's Treatise on Life Assurance. The method, as improved by Mr. Davies, has since been treated, and a very large collection of tables adapted to it, for both one and two lives, has been given, by Mr. Jones, in his work on annuities, in the Library of Useful Knowledge. But by far the most valuable papers on the subject are two in the Companion to the Almanack, for 1840 and 1842, by Professor De Morgan, which contain the materials of many thousand formulae, applicable to almost every case that can occur. There is also some notice of the method in the article “Reversions,” in the Penny Cyclopædia, which article likewise is the production, we believe, of Professor De Morgan.

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