An insurer may apply to HMRC for a release from the obligation to nominate a tax representative if it is resident in a member state of the European Economic Area (‘EEA’) and under the law of that state
An application for release must be sent to HMRC at the address
given in
IPTM9010 explaining the reasons for
making it in full. If no explanation is given then HMRC is entitled
to issue a notice to the overseas insurer within 30 days of the
application requiring an explanation of why it would be a criminal
offence to provide information to HMRC, with reference to the laws
of the EEA state in question.
A release cannot be given on these grounds for an insurer
resident in a state where it only became a criminal offence after
17 March 1998 to disclose the relevant information to HMRC.
IPTM9020 explains that an overseas insurer must nominate a tax
representative if gross premiums on relevant insurances are at
least £1million and that this requirement continues to apply
even if the gross premiums fall below £1million, unless they
cease or decline to a negligible amount, below £100,000, say.
This might happen if the insurer transferred all or most of its UK
business to another insurer.
The insurer may then apply to HMRC at the address given in
IPTM9010 for a release from the
requirement to appoint to a tax representative. HMRC is entitled to
investigate an application for release by asking for more
information within 30 days of receiving it, for example, by asking
the insurer to produce evidence that the business has fallen to a
low level or been transferred.
| Further reference and feedback | IPTM1013 |
