New draft tax legislation

Aviva PLC
04 October 2005

News release

4 October 2005

                          NEW DRAFT TAX LEGISLATION

Aviva plc ('Aviva') is aware that the Treasury has stated its intention to
introduce new measures affecting the tax regime for non-profit funds. The scope
and full impact of the draft legislation are materially unclear and cannot be
fully appraised until the end of the year.

Aviva's accounting policy is to provide in its IFRS accounts for the deferred
tax impact of distributing accumulated non-profit reserves.  Accordingly, there
is expected to be no net impact on Aviva under IFRS.

The European Embedded Value (EEV) impact, which is estimated to be approximately
£70 million in respect of the accelerated tax cost, is not material for Aviva.
There is no impact on Aviva's operating profit.

These estimates are provisional and are based upon draft legislation which is
very uncertain. They have not been audited or subjected to external actuarial
review.

Andrew Moss, group finance director of Aviva, said: 'We were disappointed that
the Treasury did not discuss in advance this proposal to change fundamentally
the basis on which insurance companies are taxed. We believe this tax is flawed
in concept and, along with the rest of the industry, we shall be lobbying
strongly to have this draft legislation withdrawn or amended.'

                                    - ends -


Enquiries:

Media
Sue Winston, head of group media relations              [phone]

Analysts
Charles Barrows, investor relations director               [phone]
Nicole Marques, investor relations manager               [phone]

Notes to editors:
                    
     •    Aviva is the world's sixth-largest insurance group based on gross
          world-wide premiums and market capitalisation (at 31 December 2004); 
          it is one of the leading providers of life and pensions in Europe and 
          has substantial businesses in other markets around the world.
          
     •    Aviva's main activities are long-term savings, fund management and
          general insurance, with world-wide total income of £40 billion and 
          assets under management of £280 billion at 31 December 2004.
          
     •    The Aviva media centre at www.aviva.com/media includes images, company
          and product information and a news release archive.


                      This information is provided by RNS
            The company news service from the London Stock Exchange                   E