IPTM4420 - Purchased life annuities: overseas payers: restrictions on who may be nominated to be a tax representative

Individuals

An insurer may only nominate an individual to be their tax representative if that individual is resident in the UK and has a fixed place of residence in the UK. A fixed place of residence is where a person normally lives or carries out a permanent business. A residential or commercial property held on a lease of at least 12 months would amount to a fixed place of business but a ‘care of’, PO Box postal address, hotel or other temporary accommodation would not.

Persons other than individuals

An insurer may nominate a person other than an individual, for example a company, to be their tax representative provided that person has a business establishment in the UK. This means accommodation which is, or is intended to be, occupied and used with a reasonable degree of permanence for the purpose of the representative’s business.

A tax representative’s appointment must cease if these residence conditions are clearly breached, for example if a tax representative who is an individual becomes resident outside of the UK.

There is guidance on replacement of a tax representative in IPTM4470.