IPTM3710 - Chargeable events: foreign policies: effect on qualifying status

A ‘foreign policy’ of life insurance will not usually be a qualifying policy, see IPTM2020 and IPTM3310. The exception is if the policy was issued by a UK branch or permanent establishment of the foreign insurer, such that the premiums are subject to the UK system of taxation. Some well-known companies writing policies in the UK are in fact foreign insurers operating through branches.

A ‘foreign policy’ may also be treated as qualifying if it is transferred to a UK branch of a foreign insurer. If such a policy is said to be a qualifying policy but has not been certified as such, HMRC offices should refer it to CT&VAT (Technical) Insurance Group - see ‘Technical Help’ link on left hand bar.