IPTM4480 - Purchased life annuities: overseas payers: release from requirement to appoint a tax representative: procedure for agreeing release with HMRC

Application for release from requirement to appoint a tax representative

A non-UK insurer may apply to HMRC, under regulation 17, to be released from the requirement to appoint a tax representative by making a declaration that it will conduct life annuity business in accordance with the law applicable in the UK including in The Income Tax (Purchased Life Annuities) Regulations 2008 SI2008/562 as amended by SI2008/1481.

If HMRC agree to the request to be released from the obligation, the insurer will need to ensure that they comply with the procedures relating to the partial exemption scheme as set out in IPTM4350 onwards.

If the declaration given does not specify that the insurer will conduct life annuity business as set out in the first paragraph above, then HMRC will not agree to the release of the insurer from appointing a tax representative.

Applications for release should be sent to HMRC at the contact address given in IPTM4430.

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Form of words of the declaration

There is no specific form of words that the insurer must use when making the declaration. The simplest way for a non-UK insurer to make the declaration is to use the form of words at IPTM4500. 

Otherwise the application must declare that the insurer will conduct life annuity business in accordance with the law applicable in the UK including in The Income Tax (Purchased Life Annuities) Regulations 2008 SI2008/562 as amended by SI2008/1481.

In either situation, the declaration should be signed by the company secretary, or other officer authorised to act on behalf of the company.

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Monitoring of arrangements and HMRC’s power to withdraw from a release agreement

HMRC will monitor whether a non-UK insurer complies with the declaration that they have given under the agreement to release them from the requirement to have a tax representative.

HMRC has the power to withdraw from such an agreement. It would consider doing so if there was reason to believe that a non-UK insurer had failed to comply with the terms of its declaration or if it was unable to be satisfied that the insurer was fully complying with the requirements. A non-UK insurer has the right to ask HMRC to review the decision and to appeal against a decision by HMRC to withdraw from a release agreement. An appeal would be heard by the First-tier Tribunal.