IPTM7235 - Audits of insurers: introduction

HMRC Charity, Assets and Residence - Audit Unit (CAR - Audit) undertake inspections to ensure that insurers have met their obligations to report chargeable events and gains.

The purpose of the audit

Auditors will inspect insurers’ records and review their procedures to confirm that, where necessary, a correct chargeable event certificate has been delivered following

• a death giving rise to benefits under the policy
• the maturity of the policy
• a surrender in whole or in part of the rights conferred by the policy
• a whole or part assignment for money or money’s worth of those rights
• an occurrence of a personal portfolio bond event.

Auditors will also check that procedures are in place to recognise changes in qualifying status following certain variations to the policy or contract.

Code of Practice

A Code of Practice entitled ‘Inspection of Schemes Operated by Financial Intermediaries’ explains how the inspections are carried out. In particular it explains financial institutions’ rights, and promises that they will be treated fairly and courteously. It also promises that HMRC will provide help where appropriate. Insurers can obtain a copy of from http://www.hmrc.gov.uk/leaflets/inspection-of-schemes.htm.

Help visits for new insurers

New insurers, or existing insurers implementing major systems or procedure changes, can seek advice from CAR - Audit, who will if necessary arrange a help visit.

Contact

For all queries on the audit regime contact

HM Revenue & Customs
Charities, Assets and Residence - Audit Unit
Room 33 East Block, Barrington Road
Worthing, West Sussex BN12 4XJ.