GIM10240 - Non-resident insurers: other taxation issues: taxation of non- residents generally

The taxation of UK branches of general insurers follows in most respects the taxation of all non-resident companies trading in the UK. For ways in which the corporation tax system applies differently to non-residents trading in the UK see in particular:

• CTM34230 to CTM34270 Non-resident companies generally
• CTM56305 onwards and CFM6300 onwards - loan relationships - imported losses
• CTM56710, CFM6214 and CFM13611 - loan relationships and derivative contracts - unallowable purposes where debits not connected with UK activities
• CFM10521 - accounting in currency other than sterling
• CG42001 onwards - chargeable gains.

It should be noted that this general alignment of treatment between general insurers and non- residents as a whole means that the treatment of non-resident general insurers and that of overseas life insurance companies is different in some respects. In particular a non-resident general insurer was not entitled to a tax credit in respect of its distributions received from UK companies (see ICTA88/SCH19AC/PARA5A) and was not entitled to the equivalent of ICTA88/S242 (see ICTA88/SCH19AC/PARA5B). Nor was it entitled to relief by way of credit for foreign tax on its income before the amendment of ICTA88/S794 made in FA00/SCH30 for accounting periods ending after 20 March 2000.