Purchased life annuities: record-keeping requirements and provision of information to HMRC
The references to ‘insurer’ in this section are to the ‘relevant person’ as described in IPTM4350.
All insurers, whether UK or overseas, must keep records that enable HMRC to ascertain the terms of the annuity so that HMRC can establish whether the annuity is a purchased life annuity within ITTOIA05/S717(4) and ITTOIA05/S423.
All insurers must also keep records under The Income Tax (Purchased Life Annuities) Regulations 2008 SI2008/562 as amended by SI2008/1481.
HMRC may require insurers to supply information to them so they can determine whether an annuity has been correctly categorised as a purchased life annuity, if any exempt element has been correctly calculated and to ensure that all of the legal requirements have been complied with.
Insurers must keep relevant records for each annuity for a period of three years beginning with the date on which the contract for the annuity was terminated.
Where an insurer transfers their obligation under an annuity to another insurer, then they must transfer all of the records that they were required to keep, within three months of the date of the transfer, to the insurer who has taken over the annuity.
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