IPTM9010 - Overseas insurers: introduction to the reporting rules

In most circumstances, information about chargeable events on life insurance policies, capital redemption policies and life annuity contracts with an overseas insurer must be provided to policyholders and HMRC in broadly similar fashion to information provided by UK insurers. The information may be provided directly by the overseas insurer or by a UK tax representative of the insurer appointed either by the insurer or by HMRC.

IPTM9020 onwards explains the reporting regime that applies to overseas insurers, including the circumstances in which an overseas insurer is required to appoint a tax representative in the UK and the circumstances in which it may be released from this requirement. The legislation relating to tax representatives is the Overseas Insurers (Tax Representatives) Regulations 1999, SI 1999/881 (or ‘Tax Representative Regulations’ for short).

Information required

The information that must be provided is similar to that required from UK insurers but not identical.

Chargeable event rules

Much of the material in Chapter 7 - IPTM7000 onwards - is also relevant to overseas insurers since the range of chargeable events that can arise on an overseas policy, and the method of calculating chargeable event gains, is the same as for policies from UK insurers. Where appropriate, cross-references to that material will be given in IPTM9020 onwards.

Company policyholders

The chargeable event gain rules do not apply to investment life policies, purchased life annuity contracts and capital redemption policies owned by companies. Instead they are taxed under the loan relationship rules - see IPTM3900 onwards.

Where the policyholder is a company the insurer is not required to issue it, or HMRC, with a chargeable event certificate unless it has information to suggest that the taxable person is different from the policyholder and is not a company. However the insurer will not be penalised for continuing to issue certificates where, for instance, it is not easy to distinguish on its systems company policyholders from other policyholders.

Contact

The Insurance Team within the Financial Services Team in BAI administers the reporting regime for overseas insurers.

Details of chargeable events and gains, including chargeable event certificates, should be sent to the address given at IPTM3210. Nominations of tax representatives and other applications under the reporting regime should be sent to the Insurance Team by email at [email protected] or by post to

HM Revenue & Customs
BAI Financial Services Team 3/64
100 Parliament Street
London
SW1A 2BQ