Commentary

E1.456E Life insurance gains—overseas insurers

Personal and employment tax

E1.456E Life insurance gains—overseas insurers

E1.456E Life insurance gains—overseas insurers

An 'overseas insurer' is a person not resident in the UK who carries on a business which consists of or includes the issuing and carrying out of life insurance or capital redemption policies or contracts for life annuities1.

A 'relevant insurance' for the purposes of this article is such a policy or contract:

  1.  

    •     which is held by a person resident in the UK which could give rise to a gain assessable under E1.455, and

  2.  

    •     the obligations are those of a person not resident in the UK who does not carry on business in the UK through a permanent establishment in the UK2

Nomination of a tax representative

The provisions described in E1.455–E1.456D requiring an insurer to deliver certificates could not be enforced against an overseas insurer issuing policies or contracts to UK resident policyholders who do not have a permanent establishment in the UK. Provisions have been introduced to require such an insurer who issues a significant amount of such policies to appoint a UK representative to be responsible for delivering the necessary certificates3.

An overseas insurer is within these provisions from 6 April 1999 or, if later, from the time when the total amount of gross premiums payable under relevant insurances in respect of which it or a connected person has obligations reaches £1m4. Within three months of that time, the overseas insurer must nominate to HMRC a person to be his tax representative who is approved by HMRC. If the person is an individual,

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