IPTM4450 | Purchased life annuities: non-UK insurers: appointment of a tax representative by HMRC

Where a non-UK insurer has failed to appoint a tax representative, either through failing to nominate a representative at all or because its nomination of a tax representative was rejected, HMRC has the power to appoint a tax representative of the insurer.

Persons who may be appointed by HMRC to be the tax representative

HMRC may only appoint a person to be the tax representative of an overseas insurer where that person has a significant business or economic connection with the insurer. This would include, but is not limited to, companies connected with the non-UK insurer and the UK branch or agency of any such company.

However, HMRC could not, for example, appoint as a tax representative an independent financial adviser in the UK unless that person is responsible for marketing most of the business that the non-UK insurer has with UK residents. Nor could it appoint a firm of accountants or solicitors whose only connection with the non-UK insurer is that it acts as auditor or professional adviser to the insurer.

Right to ask HMRC to review the decision and to appeal

If HMRC decides to appoint a tax representative for a non-UK insurer then both the insurer and the person appointed have the right within 30 days of being notified of the decision, to appeal against that decision. They can also ask HMRC to review the decision. The First-tier Tribunal will hear any appeal.

If the non-UK insurer and the person nominated do not ask for a review of the decision or an appeal is not successful, then the date of appointment of that person is the first date on which there is no possibility of a further appeal against that decision.