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HMRC internal manual

Holding and Movements - Financial Securities Assurance

General information: Why do we not accept insurance policies?

The financial security must be an agreement between the HMRC and a third party (i.e.approved financial institution). An insurance policy is an agreement between thepolicyholder (i.e. the person paying the premiums) and the financial institution. Itsvalidity depends upon several factors, including payment of the premiums by thepolicyholder. Even where a trader offers to make HMRC a beneficiary under the terms of aninsurance policy, this is unacceptable. It would not provide the necessary relationshipbetween the financial institution and HMRC.