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HMRC internal manual

Insurance Policyholder Taxation Manual

Audits of insurers: introduction

HMRC Charity, Assets and Residence - Audit Unit (CAR - Audit) undertake inspections toensure that insurers have met their obligations to report chargeable events and gains.

The purpose of the audit

Auditors will inspect insurers’ records and review their procedures to confirmthat, where necessary, a correct chargeable event certificate has been delivered following

  • a death giving rise to benefits under the policy
  • the maturity of the policy
  • a surrender in whole or in part of the rights conferred by the policy
  • a whole or part assignment for money or money’s worth of those rights
  • an occurrence of a personal portfolio bond event.

Auditors will also check that procedures are in place to recognise changes inqualifying status following certain variations to the policy or contract.

Code of Practice

A Code of Practice entitled ‘Inspection of Schemes Operated by FinancialIntermediaries’ explains how the inspections are carried out. In particular itexplains financial institutions’ rights, and promises that they will be treatedfairly and courteously. It also promises that HMRC will provide help where appropriate.Insurers can obtain a copy of from

Help visits for new insurers

New insurers, or existing insurers implementing major systems or procedure changes, canseek advice from CAR - Audit, who will if necessary arrange a help visit.


For all queries on the audit regime contact

HM Revenue & Customs
Charities, Assets and Residence - Audit Unit
Room 33 East Block, Barrington Road
Worthing, West Sussex BN12 4XJ.

Further reference and feedback IPTM1013