Company: AHL
Filing Date: 2025-03-19
Form Type: 20-F
Source: 0001267395-25-000019
Chunk: 57

Company: ASPEN INSURANCE HOLDINGS LTD
Filing Date: 2025-03-19
Form: 20-F
Item: Item 3
Chunk 57
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-U. K. entities currently intend to operate in such a manner that any (other than the U. K. Subsidiaries) carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom. Nevertheless, because neither case law nor U. K. statute completely defines the activities that constitute trading in the United Kingdom through a permanent establishment in the United Kingdom, His Majesty’s Revenue and Customs (“ HMRC”) might contend successfully that any of us (other than the U. K. Subsidiaries) are trading in the United Kingdom through a permanent establishment in the United Kingdom.

The United Kingdom has no comprehensive tax treaty with Bermuda. There are circumstances in which companies that are neither tax resident in the United Kingdom nor carrying on a trade in the United Kingdom through a permanent establishment in the United Kingdom (and are therefore not subject to U. K. corporation tax) but are not entitled to the protection afforded by a tax treaty between the United Kingdom and the jurisdiction in which they are a resident may nonetheless be exposed to income tax in the United Kingdom on the profits of a trade carried on there, even if that trade is not carried on through a permanent establishment. However, our non-U. K. entities intend to operate in such a manner that none fall within this charge to income tax in the United Kingdom.

If our non-U. K. entities, other than the U. K. Subsidiaries, were treated as being resident in the United Kingdom for U. K. corporation tax purposes, or as carrying on a trade in the United Kingdom, whether or not through a permanent establishment, our operating results could be materially adversely affected.

Our U. K. operations may be affected by recent changes in U. K. tax law.

The U. K. Subsidiaries should be treated as resident in the United Kingdom and accordingly be subject to U. K. tax in respect of their worldwide income and gains. Any change in the basis or rate of U. K. corporation tax or HMRC’s practice and interpretation of U. K. tax law could materially adversely affect the business, prospects, financial condition or results of operations of the U. K. resident companies or their ability to provide returns to shareholders. The U. K. corporation tax rate is currently 25%. As part of the measures in the 2024 Autumn Budget (October 30, 2024), the rate of employer national insurance contributions that employers are required to pay in respect of their employees’ earnings is increasing from 13.