The Life Assurance and Other Policies (Keeping of Information and Duties of Insurers) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

Section 552 of the Income and Corporation Taxes Act 1988 (“section 552” and “the Taxes Act” respectively) requires an insurer to deliver a certificate to the inspector of taxes where a chargeable event within the meaning of Chapter II of Part XIII of the Taxes Act has happened. (The meaning of a “chargeable event” is given by sections 540(1), 542(1) and 545(1) of the Taxes Act in relation to a policy of life insurance, a contract for a life annuity and a capital redemption policy respectively.) These Regulations make provision for securing that the Commissioners of Inland Revenue (“the Board”) are able to ascertain whether there has been or is likely to be any contravention of the requirements of section 552 and to verify any certificate delivered under that section.

Regulation 1 provides for citation and commencement and regulation 2 for interpretation.

Regulation 3 requires an insurer to keep sufficient records to enable the Board to ascertain the terms of the policy or contract, to ascertain whether there has been or is likely to be any contravention of section 552 and to verify any certificate delivered under that section.

Regulation 4 makes provision for the period for which record are to be kept.

Regulations 5, 6 and 7 make provision for records to be transferred. Regulation 5 applies in any case where there is a transfer of the obligations under any policy or contract; regulation 6 in certain cases where an insurance company issues a policy in substitution for a policy issued by another insurance company which was resident outside the United Kingdom at the time the original policy was issued; and regulation 7 in certain cases where an insurance company issues a policy in substitution for, or on the maturity of, a policy issued by another insurance company, and the two companies are both members of a group of companies.

Regulations 8 and 9 empower the Board to obtain information and to inspect records.