GIM6590 - Technical provisions: Schedule 11 FA2007: procedure following production of a report

As the normal machinery of FA98/SCH18 applies (see GIM6530), the conclusions in a report provided under FA07/SCH11/PARA2 are not themselves binding on either party, but inform further discussions.

Where the report indicates that general insurer’s technical provisions are not in excess of the appropriate amount in most cases the enquiry will not need to proceed further. CT&VAT (Technical) Insurance Group should be consulted by HMRC officers on any exceptions - see ‘Technical Help’ link on left hand bar.

Where the report indicates that general insurer’s technical provisions are in excess of the appropriate amount, the enquiry should normally be closed with an adjustment to the self-assessment in line with the recommendations in the report. But there is no bar on the general insurer making further representations following the delivery of the report and before the enquiry is closed, and the HMRC officer will consider them.

The report will be key evidence in the event that the HMRC officer makes an amendment to the general insurer’s self assessment and an appeal is entered which proceeds to a hearing before the Tribunal.

If the scope of the report is carefully agreed between the HMRC officer and the general insurer, difficulties and the need for appeals will be kept to a minimum.