IPTM3280 - Chargeable events: person liable to charge: multiple interests: chargeable event certificates

IPTM3210 describes the obligations on insurers to provide chargeable event certificates to policyholders and HMRC. Where there are multiple policyholders, the reporting requirements are adapted to deal with this. In each case, the full gain is reported on the certificates even though it may need to be apportioned for tax purposes between the various liable persons, and this should be considered when completing or checking tax returns. The policyholder or holders will not necessarily be the person or persons chargeable, see IPTM3210.

Certificates to policyholders

Insurers are required to send certificates to all policyholders for which they have an address, except on a part assignment (that is, an assignment of a share in the rights under the policy or contract).

On a part assignment, the insurer must send certificates only to those policyholders who are also assignors of the policy. This is to ensure that, as far as possible, only liable persons receive chargeable event certificates since under the rules for part assignments, described at IPTM3575 onwards, the persons to whom the policy is assigned are not liable on a gain on a part assignment.

Certificates to HMRC

For events other than part assignments, chargeable event certificates for HMRC must include

• the name and address of one policyholder
• the name of a second policyholder, if there is one, and
• the number of policyholders.

For part assignments, this information must be confined to those policyholders who are also assignors of the policy.