IPTM9130 | Overseas insurers: cessation of appointment and replacement of a tax representative

Termination of appointment by the insurer

An overseas insurer is entitled to replace its tax representative at any time. It should inform HMRC by writing to the contact address given in IPTM9010. The existing tax representative will not cease to be responsible until the insurer has nominated a replacement and that replacement has been approved by HMRC.

Resignation of a tax representative

A tax representative is also entitled to resign unless it was appointed by HMRC as described in IPTM9090. Notice of resignation should be given to HMRC and the overseas insurer in writing. The overseas insurer must then nominate a replacement tax representative within three months. The existing representative must remain acting until HMRC has approved the appointment of a replacement.

Cessation of appointment due to death, bankruptcy, dissolution or winding-up

If the tax representative is an individual then the appointment will cease automatically if he or she dies or becomes bankrupt. If the tax representative is a company or partnership then the appointment will cease if the company or partnership is dissolved or wound-up. The insurer must then nominate a replacement tax representative within three months and the replacement must pick up the duties from the date that the appointment of the predecessor ceased.

Termination by HMRC of the appointment of a tax representative

HMRC are also entitled to terminate the appointment of a tax representative and require the insurer to nominate another person as a replacement tax representative. HMRC may do this if:

• the tax representative no longer meets the conditions described in IPTM9060, for instance, where it is a company that no longer has a UK permanent establishment, or

• HMRC has reason to believe that the representative

  • cannot or will not carry out its duties properly, or

  • has failed to carry out its duties properly.

The insurer may then either nominate a replacement tax representative within three months, or appeal against the decision to terminate the appointment. They may also ask HMRC to review the decision. The previous representative continues to be the tax representative until either HMRC appoints or approves another person. Once approved, the replacement representative must take on the duties from the date the approval notice was given.