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HMRC internal manual

Insurance Policyholder Taxation Manual

From
HM Revenue & Customs
Updated
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Immediate Needs Annuities: the regulatory position

The Financial Services Authority regulates the insurance industry through the FinancialServices and Markets Act 2000. Different categories of insurance business are regulated indifferent ways and to different extents.

Immediate Needs Annuities, as the name suggests, are annuity business and for regulatorypurposes are Contracts of Long-Term Insurance, falling in Category I - Life and Annuitybusiness.

This is of no relevance to the tax treatment for the policyholder outlined at IPTM6210 onwards, but it is relevant to the taxation of insurersthat write such business.

The taxation of Insurers is dealt with in the General Insurance Manual (GIM) and the LifeAssurance Manual (LAM).

Further reference and feedback IPTM1013