IPTM7000 - Chargeable event guidance for insurers: contents

This chapter of the manual is primarily to assist insurance companies, friendly societies and practitioners in complying with the legislative requirements to report chargeable events and gains on UK policies to the policyholder and HM Revenue & Customs. Individual taxpayers and their representatives seeking guidance on their own affairs should refer initially to the self assessment tax return guidance (on boxes 12.1 to 12.9) and Help Sheet HS320.

The chargeable event and reporting regime for policies from overseas insurers is very similar to that for UK insurers and much of the guidance in this chapter is also relevant to overseas insurers and their representatives. IPTM9000 onwards gives guidance on the reporting regime for policies from overseas insurers and how it ties in with the guidance in this chapter.

The chargeable event legislation as it applies to individuals, trustees and personal representatives has now been rewritten under the Tax Law Rewrite Project and is contained in Chapter 9 of Part 4 of ITTOIA05. The legislation as it applies to companies remains in the original legislation in Chapter 2 of Part 13 of ICTA88, which has been amended to apply to companies only. However, from the start of the first accounting period of a company to begin on or after 1 April 2008, this legislation no longer applies to companies. Instead, companies are taxed under the loan relationships legislation on investment life insurance contracts to which they are a party – IPTM3900 onwards.

The legislation governing reporting requirements of UK insurers remains in ICTA88/S552 and ICTA88/S552ZA, which have been amended slightly to reflect the enactment of ITTOIA05. The qualifying policy rules remain in ICTA88/SCH15.

This guidance will primarily refer to and follow the structure of ITTOIA05, with references to ICTA88 only where appropriate, since in the vast majority of cases chargeable event gains will be taxable under ITTOIA05.