LAM01010 | Introduction and long-term insurance business overview: introduction to this manual

This manual provides guidance on the corporation tax treatment of insurance companies writing life assurance and other long-term insurance business. The guidance relates to the life tax regime introduced in Finance Act 2012 effective from 1 January 2013. The manual covering the regime prior to 2013 is archived and still available.

The tax treatment of life insurance policyholders is set out in the Insurance Policyholder Taxation Manual (IPTM). The tax treatment of pension policyholders is set out in the Pensions Tax Manual (PTM). Issues related to general insurance (property & casualty) are set out in the General Insurance Manual (GIM).

The manuals are primarily written for the guidance of HMRC staff and are intended to be used by insurers and their advisers. This manual is relevant to companies writing life assurance and other long-term business as defined in FA12/S56 and FA12/S63.

The terms ‘life insurance’ and ‘life assurance’ are normally interchangeable and ‘life insurance’ is generally used in this manual except where the specific definition of life assurance for tax purposes is being referred to.