IPTM3710 - Foreign policies: effect on qualifying status

A ‘foreign policy’ of life insurance will not usually be a qualifying policy - see IPTM2020 and IPTM3310. The exception is if the policy was issued by a UK branch or permanent establishment of the foreign insurer, such that the premiums are subject to the UK system of taxation. Some well-known companies writing policies in the UK are in fact foreign insurers operating through branches.

A foreign policy may also be treated as qualifying if it is transferred to a UK branch of a foreign insurer.