Explanatory note

These Regulations amend the Overseas Insurers (Tax Representatives) Regulations 1999 (S.I. 1999/881) (“the principal Regulations”). Schedule 1 to the principal Regulations contains the form of an undertaking which an overseas insurer (within the meaning of section 552A of the Income and Corporation Taxes Act 1988 (c. 1)) (“the Taxes Act”) may give in order to be released (under regulation 12(1)(c) of the principal Regulations) from the requirement that it have a tax representative. These Regulations vary the terms of the undertaking the insurer is required to give in the light of changes made to the information requirements for UK insurers by Part 2 of Schedule 28 to the Finance Act 2001 (c. 9) (“Part 2”).

Regulation 1 provides for the citation, commencement and effect of the Regulations, and regulation 2 for interpretation.

Regulation 3 introduces the amendment to the principal Regulations.

Regulation 4 amends the definition of “notice” in regulation 2 of the principal Regulations to permit electronic delivery of a notice which is sent by an approved means of electronic communications. It also makes an amendment to provide that a reference to a numbered section is a reference to the section of the Taxes Act which is so numbered.

Regulations 5 and 6 make drafting changes consequent on the second of the amendments made by regulation 4.

Regulation 7 makes an amendment to paragraph 4(a) of the Schedule to the principal Regulations consequent on the restructuring of section 552 of the Taxes Act by Part 2.

Regulation 8 substitutes a new paragraph 8 of the Schedule to the principal Regulations. This makes it clear that the insurer is under an obligation to deliver a certificate under paragraph 9 or 10 of the Schedule, not only on the happening of a chargeable event within the meaning of Chapter 2 of Part 13 of the Taxes Act, but also when a chargeable event is treated as occurring by reason of regulation 6(1) of the Personal Portfolio Bonds (Tax) Regulations 1999 (S.I. 1999/1029).

Regulation 9 amends paragraph 10 of the Schedule to the principal Regulations to make it clear that the details, which the insurer is to give under sub-paragraphs (e) and (f) of that paragraph, are those which would apply disregarding subsections (3) and (8) respectively of section 553.

Regulation 10 makes transitional provision for an undertaking given by an overseas insurer before the coming into force of these Regulations. Its effect is to continue an undertaking notwithstanding the changes made to the Schedule to the principal Regulations by these Regulations.

A regulatory impact assessment has been prepared in respect of these Regulations. A copy has been placed in the library of each House of Parliament and may be found on the Inland Revenue website (www.inlandrevenue.gov.uk) or obtained from Revenue Policy, Business Tax, Room 5W5, 5th Floor, 22 Kingsway, London, WC2B 6NR.