This paper is not intended to be a fully comprehensive survey of the taxation of insurance business. Rather it is meant to highlight some of the aspects of the taxation of this business which have been affected by the 1965 Finance Act and which should now, I think, be influencing our thinking as regards the transacting of insurance from both the shareholders' and the policyholders' point of view. Despite the splendid efforts of both the Life Offices' and British Insurance Associations during the past year, not all these changes have had the publicity which might have been expected after a normal Finance Act. I have dealt with general insurance and ordinary life assurance separately and, although the paper is written from a proprietary office's point of view, most of it is equally applicable to a mutual office. Neither have I dealt specifically with industrial life business, but I believe that most of the paper applies to this as well.