IPTM6230 - Immediate Needs Annuities: the regulatory position

The Financial Services Authority regulates the insurance industry through the Financial Services and Markets Act 2000. Different categories of insurance business are regulated in different ways and to different extents.

Immediate Needs Annuities, as the name suggests, are annuity business and for regulatory purposes are Contracts of Long-Term Insurance, falling in Category I - Life and Annuity business.

This is of no relevance to the tax treatment for the policyholder outlined at IPTM6210 onwards, but it is relevant to the taxation of insurers that write such business.

The taxation of Insurers is dealt with in the General Insurance Manual (GIM) and the Life Assurance Manual (LAM).