The Government and Association of British Insurers (ABI) announced on 26 May that the tax credit reinsurance (TCR) scheme will close on 30 June 2021 as planned.
The scheme was designed as a temporary fix for companies struggling to get insurance cover for transactions because of the pandemic.
According to the Government, over half a million businesses benefited from TCR, “providing certainty to firms across the UK and safeguarding jobs”.
It protected more than £575 billion of business turnover by providing approximately £210bn in insurance cover.
Now that “participating insurers have indicated to the Government that the scheme is no longer required” and there is a “positive outlook for economic recovery in 2021”, the Government is confident in sticking to its schedule.
Business Minister Paul Scully called TCR “a huge success story”. He said:
“The scheme allowed trade to continue flowing despite the uncertainty caused by the pandemic, and it is only right that now our economic outlook has improved and businesses are getting back on their feet, the private sector resumes its role of providing insurance cover.”
Talk to us about TCR before the scheme ends.
