IPTM9200 - Overseas insurers: release from requirement to appoint a tax representative: other circumstances

Insurer is resident in an EEA member state where it is a criminal offence to discloseinformation to HMRC

Regulation 12(1)(a) of SI 1999/881 (Overseas Insurers (Tax Representatives) Regulations 1999) allows an insurer to apply to HMRC for a release from the obligation to nominate a tax representative if it is resident in a member state of the European Economic Area (‘EEA’) and under the law of that state:

  • it would be a criminal offence to disclose to HMRC the information set out in ICTA88/S552 about UK resident policyholders, and
  • on 17 March 1998 it would also have been a criminal offence to do so.

An application for release must be sent to HMRC at the address given in IPTM9010 explaining the reasons for making it in full. If no explanation is given then HMRC is entitled to issue a notice to the overseas insurer within 30 days of the application requiring an explanation of why it would be a criminal offence to provide information to HMRC, with reference to the laws of the EEA state in question.

A release cannot be given on these grounds for an insurer resident in a state where it only became a criminal offence after 17 March 1998 to disclose the relevant information to HMRC.

UK business of the overseas insurer ceases or declines to negligible value

IPTM9020 explains that an overseas insurer must nominate a tax representative if gross premiums on relevant insurances are at least £1 million and that this requirement continues to apply even if the gross premiums fall below £1 million, unless they cease or decline to a negligible amount, below £100,000, say. This might happen if the insurer transferred all or most of its UK business to another insurer.

The insurer may then apply to HMRC at the address given in IPTM9010 for a release from the requirement to appoint to a tax representative. HMRC is entitled to investigate an application for release by asking for more information within 30 days of receiving it, for example, by asking the insurer to produce evidence that the business has fallen to a low level or been transferred.