Person liable to charge: chargeable event certificates
UK insurers are required to issue chargeable event certificates to policyholders reporting chargeable events. They are also required to show on the certificate the full gain on the chargeable event except
- on whole assignments, where instead various information about the event and policy must be provided, or
- where commission on the policy has been rebated or reinvested as premium and this affects the computation of the gain, as explained in IPTM3527. Then the gain will be reported without taking into account the rebated or reinvested commission, because the insurer will not have all the information to enable it to calculate the full gain.
They are also required to issue certificates to HMRC, reporting the same information as to policyholders, on all whole assignments and on all other chargeable events where the gain exceeds half the basic rate limit for the tax year in which the event occurred.
Certificates for HMRC should be sent to the following address:
RIS PCD Coventry
Room 2A, Second Floor
1 Manor House Drive
Where a policy or contract is with an overseas insurer and was taken out on or after 6 April 2000, the insurer is subject to the same obligations to provide certificates to policyholders and HMRC as its UK counterparts.
Where the policy or contract was taken out before 6 April 2000, the insurer is only required to report the nature of an event bringing the policy to an end, and the amount of proceeds paid on that event. This must be reported to policyholders irrespective of the size of the proceeds, but only to HMRC if the proceeds exceed twice the basic rate limit for the year in which the event occurred.
Certificates for HMRC are sent to