IPTM9150 | Overseas insurers: release from requirement to appoint a tax representative: post-5 April 2000 policies and contracts: certificates for policyholders

Information to be provided on certificates for policyholders

Where any chargeable event occurs on a ‘relevant insurance’ - see IPTM9030 - made after 5 April 2000, an insurer who has given undertakings under a release agreement must provide the policyholder with a chargeable event certificate showing the following information, unless it is satisfied that no gain arises on the event:

• the name and address of the policyholder - IPTM7105 to IPTM7115

• the policy reference number

• the date and nature of the chargeable event - IPTM7300 to IPTM7405

• the full amount of the chargeable event gain, including on assignments for money or money’s worth, see IPTM9170, without any apportionment for periods of residence outside the UK by the policyholder - IPTM7500 to IPTM7650 gives guidance on calculating gains on the various chargeable events except personal portfolio bond events which are covered at IPTM3600 to IPTM3670

• the full number of years for top-slicing relief - IPTM7560 - without any apportionment for periods of residence outside the UK by the policyholder

• whether the policyholder is to be treated as having paid income tax at the basic rate on the gain - normally no tax is treated as paid on overseas insurance gains, see IPTM7555

Some of the guidance in other Chapters, particularly Chapter 7 (IPTM7000 onwards), is also relevant for overseas insurers in producing and delivering certificates and cross-references have been given to other relevant material. IPTM7700 onwards, which covers the personal portfolio bond rules in detail, may also be useful as personal portfolio bond events and gains must also be reported.

Multiple policyholders

If there is more than one policyholder then the insurer must provide a certificate reporting the full amount of the gain to each of the policyholders. Each certificate should show the same information about the event and gain. There is no provision under the legislation for reporting only a policyholder’s ‘share’ of a gain on a certificate, if indeed the insurer is able to calculate it, and insurers must not attempt to do so.

Time limits for providing certificates to policyholders

An overseas insurer must provide a certificate to a policyholder within three months of the chargeable event. However, an insurer might not find about an assignment or death until some time after the event. If so, HMRC will not regard an insurer as having breached its undertakings if it misses this time limit, provided it issues the chargeable event certificate to the policyholder within three months of being notified of the event.