IPTM4370 | Purchased life annuities: record-keeping requirements and provision of information to HMRC

The references to ‘insurer’ in this section are to the ‘relevant person’ as described in IPTM4350.

All insurers must keep records under The Income Tax (Purchased Life Annuities) Regulations 2008 (SI 2008/562).

All insurers, whether UK or overseas, must keep and may be required to supply records so that HMRC can establish whether the annuity is a purchased life annuity within ITTOIA05/S717(4) and ITTOIA05/S423. HMRC may also need to determine if any exempt amount has been correctly calculated and to ensure all legal requirements have been complied with.

Insurers must keep relevant records for each annuity for a period of three years beginning with the date on which the contract for the annuity was terminated.

Where an insurer transfers their obligation under an annuity to another insurer, they must transfer all of the records that they were required to keep, within three months of the date of the transfer, to the insurer who has taken over the annuity.