Overseas insurers: cessation of appointment and replacement of a tax representative
Termination of appointment by the insurer
An overseas insurer is entitled to replace its tax representative at any time. If so, it should inform HMRC by writing to the contact address given in IPTM9010. 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 IPTM9090. Notice of resignation should be given to HMRC and the overseas insurer in writing. The overseas 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. Then the insurer must nominate a replacement tax representative within three months and the replacement must pick up the duties from the date that the appointment of the predecessor ceased.
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 IPTM9060, for instance, where it is a company that no longer has a UK permanent 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. If the insurer does not ask HMRC to review the decision or an appeal is not successful, then the appointment of the previous representative ceases from the date that it no longer meets the conditions to be an acceptable tax representative. Once approved, the replacement representative must take on the duties from that date.
If, however, there is some doubt about whether the conditions to be an acceptable tax representative are satisfied following a notice by HMRC of its termination then the appointment may continue until the position is established, even there is no review or if the insurer does not formally appeal against the decision.
Further reference and feedback IPTM1013