Purchased life annuities: overseas payers: cessation of appointment and replacement of a tax representative
Termination of appointment by the insurer
A non-UK insurer is entitled to replace its tax representative at any time. If it wishes to, it should inform HMRC by writing to CT&VAT (Technical) Insurance Group at the contact address given in IPTM4430. The existing tax representative will not cease to be responsible until the insurer has nominated a replacement and that replacement has been approved by HMRC.
Resignation of a tax representative
A tax representative is also entitled to resign unless it was appointed by HMRC as described in IPTM4450. Notice of resignation should be given to HMRC and the non-UK insurer in writing. The non-UK insurer must then nominate a replacement tax representative within three months. The existing representative must remain acting until HMRC has approved the appointment of a replacement.
Cessation of appointment due to death, bankruptcy, dissolution or winding-up
If the tax representative is an individual then the appointment will cease automatically if he or she dies or becomes bankrupt. If the tax representative is a company or partnership then the appointment will cease if the company or partnership is dissolved or wound-up. If either of these occurs the non-UK insurer must nominate a replacement tax representative, or apply to be released from the requirement to nominate a replacement tax representative within three months.
Termination by HMRC of the appointment of a tax representative
HMRC are also entitled to terminate the appointment of a tax representative and require the insurer to nominate another person as a replacement tax representative. HMRC may do this if
- the tax representative no longer meets the conditions described in IPTM4420, for instance, where it is a company that no longer has a UK business establishment, or
- HMRC has reason to believe that the representative
- cannot or will not carry out its duties properly, or
- has failed to carry out its duties properly.
The insurer may then either nominate a replacement tax representative within three months, or appeal against the decision to terminate the appointment. They may also ask HMRC to review the decision. The existing representative must remain acting until HMRC has approved the appointment of a replacement. The insurer may also apply to HMRC to be released from the requirement to nominate a tax representative.
Further reference and feedback IPTM1013