LAM01150 - Introduction and long-term insurance business overview: Key concepts: tax definitions of ‘contract of insurance�, ‘contract of long-term insurance� and ‘insurance company�: FA12/S64-65
FA12/S64 links the definitions of a contract of insurance and a contract of long-term insurance to the regulatory definition in . Further details of the different categories are set out in LAM01140.
FA12/65 defines an ‘insurance company�.
An insurance company covered by this definition will generally be regulated in the UK by the PRA or have a permanent establishment in the UK with ‘passporting rightsâ€� into the UK from another EU or EEA regulated territory. »Ê¹ÚÌåÓýapp passporting position is dependent on the UK’s status with the EU.
»Ê¹ÚÌåÓýapp clear link between tax and regulation means that it is generally straightforward to identify if there is an insurance company to which the life tax rules will apply.
Long-term business may be written by mutual insurers, which will fall with the definition of ‘insurance company� and any BLAGAB written will fall within the I-E FA12/S68 charging provisions with only the policyholder rate of tax applying to any I-E profits.
Long-term business can also be written by registered friendly societies. »Ê¹ÚÌåÓýappse are not insurance companies in statutory terms so are not subject to the full life company rules. Instead a modified version of the rules are applied as set out in Part 3 of Finance Act 2012 (FA12/S150-179). »Ê¹ÚÌåÓýappse rules are not covered in this manual.