Lloyd's welcomes G7 tax agreement and Section 899 removal

By Rebecca Delaney

June 30 - (The Insurer) - Lloyd's of London has welcomed the removal of Section 899, which proposed significant additional tax on UK businesses, from the U.S. Reconciliation Bill.

On Saturday, G7 leaders reached an agreement on how the U.S. and global minimum tax rules will interact.

The agreement seeks to maintain the core objectives of Pillar 2 to combat multinational tax avoidance, while promoting a stable, competitive global tax environment.

G7 partners said on Saturday they had reached an understanding on a potential solution that would allow the U.S. minimum tax system to operate alongside the Pillar 2 rules, while also addressing any substantial risks around base erosion and profit shifting.

A statement by HM Treasury said the agreement helped to secure the removal of Section 899 from the U.S. Reconciliation Bill, also dubbed the Big Beautiful Bill, which could have led to substantial additional tax on UK businesses.

"We are very grateful for the Chancellor's leadership, working with her G7 Finance Minister colleagues, to secure the announcement from the U.S. Treasury and Congress that Section 899 has been removed from the reconciliation bill," said Lloyd's chair Charles Roxburgh in a statement.

"This greatly supports not only Lloyd’s business in the U.S. but all British companies with interests in the U.S. and will enable international investment in the U.S. to serve domestic businesses and communities."

Roxburgh continued: "Lloyd’s has been providing insurance capacity to support the economy of the U.S. – our largest market – for over a century, and we are pleased to continue to do so."