IPTM8305 - Certification of qualifying policies: basic requirement

Requirement for certification of policies made on or after 1 April 1976 and before 6 April 2013

For policies issued between 1 April 1976 and 6 April 2013 it was a condition of the qualifying policy rules that the policy, unless a tax exempt friendly society policy, be certified as qualifying by the Commissioners for HM Revenue and Customs (HMRC).

Even if the policy met all the other conditions to be qualifying, it would not be treated as qualifying unless it had been certified.

Friendly society policies

Although tax exempt friendly society policies did not need to be certified, there were other conditions that needed to be met, which are described in IPTM8400 onwards. But where a friendly society wrote qualifying policy business that was not tax exempt, those policies needed to be certified in the same way as qualifying policies from insurance companies.

Foreign policies

Policies written by a foreign insurer couldn’t be certified unless issued through a UK permanent establishment of that company.

Policies made before 1 April 1976 or after 5 April 2013

A policy made before 1 April 1976 did not need to be certified as qualifying unless it was varied between 1 April 1976 and 5 April 1979.

If it was varied after 5 April 1979 and remained qualifying then it did not need to be certified. However, if the variation was significant, the policyholder was entitled to request a certificate from the insurer confirming that the policy was qualifying.

A policy made after 5 April 2013 does not need to be certified.