" who is an individual not residing in the United Kingdom and either - 


(i) is a British citizen, or

(ii) is a person in respect of whose business the company has treated this regulation as applying,".

(a) on or after 8th November 1999 relevant business which is neither reinsurance business nor term assurance business is transferred to an insurance company in accordance with an authorisation granted outside the United Kingdom for the purposes of - 


(i) Article 31a.2 of the first long term insurance Directive, or

(ii) Article 11 of the third long term insurance Directive,



(b) that business has not been treated by the transferor as relating to overseas life assurance business,

(c) that business is with a policy holder who is an individual not residing in the United Kingdom and either - 



(i) is a British citizen, or

(ii) is a person in respect of whose business with the company has treated this regulation as applying, and



(d) that business is, immediately after the transfer, carried on by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company."

" (b) the declaration prescribed in paragraph (5) below, and".

(a) an insurance company has entered into relevant business which is neither reinsurance business nor term assurance business,

(b) that business is with a policy holder not residing in the United Kingdom who either - 


(i) is not an individual, or

(ii) if an individual, is not one falling within regulation 7(1)(b)(i) or (ii),



(c) the policy or contract for that business was effected either by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company, and

(d) the policy or contract was made on or after 8th November 1999.

    (2) This regulation also applies where - 

(a) on or after 8th November 1999 relevant business which is neither reinsurance business nor term assurance business is transferred to an insurance company in accordance with an authorisation granted outside the United Kingdom for the purposes of - 


(i) Article 31a.2 of the first long term insurance Directive, or

(ii) Article 11 of the third long term insurance Directive,



(b) that business has not been treated by the transferor as relating to overseas life assurance business,

(c) that business is with a policy holder not residing in the United Kingdom who either - 



(i) is not an individual, or

(ii) if an individual, is not one falling within regulation 7(1)(b)(i) or (ii), and



(d) that business is, immediately after the transfer, carried on by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company.

    (3) The business shall be overseas life assurance business where the insurance company - 

(a) in a case where the policy holder is an individual, completes the certificate prescribed in paragraph (4) below, or

(b) in a case where the policy holder is not an individual, completes the certificate prescribed in paragraph (5) below.

    (4) The certificate prescribed is a certificate - 

(a) showing the date on which it is given,

(b) stating the name of the policy holder,

(c) stating any unique identifying deisgnation given to the policy or contract,

(d) stating the territory which, to the best of the company's knowledge and belief, is the territory in which the policy holder resides,

(e) stating that the company has no knowledge of any information making it reasonable for the company to assume that the policy holder was residing in the United Kingdom at the time the policy or contract was made or, where paragraph (2) above applies, transferred,

(f) stating that to the best of the company's knowledge and belief the policy or contract is not one to which section 431D(2) applies,

(g) where the policy or contract is one to which section 431D(2) does not apply solely by virtue of section 431D(5), stating that to the best of the company's knowledge and belief the conditions specified in section 431D(5) are fulfilled, and

(h) where the company makes the statement mentioned in sub-paragraph (g) above, stating that the company is in possession of information enabling it to make that statement, and stating the nature of that information.

    (5) The certificate prescribed is a certificate - 

(a) showing the date on which it is given,

(b) stating the name of the policy holder,

(c) stating any unique identifying designation given to the policy or contract,

(d) stating the territory which, to the best of the company's knowledge and belief, is the territory in which the policy holder resides,

(e) stating that the company has no knowledge of any information making it reasonable for the company to assume that the policy holder was residing in the United Kingdom at the time the policy or contract was made or, where paragraph (2) above applies, transferred,

(f) stating that to the best of the company's knowledge and belief the policy or contract is one to which either subsection (5) or subsection (7) of section 431D applies,

(g) stating that to the best of the company's knowledge and belief the conditions specified in either subsection (5) or subsection (7) of section 431D, as the case may be, are fulfilled, and

(h) stating that the company is in possession of information enabling it to make the statement mentioned in sub-paragraph (g) above, and stating the nature of that information.

    (6) A certificate under this regulation shall be given by an employee of the insurance company, and shall show the name of that employee and his position within the company.

    (7) Paragraph (8) below applies in any case where policies or contracts for business to which this regulation applies were effected by, or where paragraph (2) above applies, transferred to, an insurance company within the same accounting period.

    (8) The insurance company may - 

(a) combine a certificate under paragraph (4) above with another certificate under paragraph (4) above in a single document, or

(b) combine a certificate under paragraph (5) above with another certificate under paragraph (5) above in a single document.

but a certificate under paragraph (4) above shall not be combined with a certificate under paragraph (5) above in a single document.

    (9) The insurance company shall complete the certificate prescribed in this regulation before the date on which it makes its company tax return for the accounting period in which the policy or contract was made or, where paragraph (2) above applies, transferred."

" (b) that business was entered into by the insurance company with a policy holder referred to in regulation 7(1)(b);";

(c) in sub-paragraph (d) for the words from "either" to the end there shall be substituted

     " either - 


(i) that there has been a change in the identity of the policy holder and the new policy holder is a person referred to in regulation 7(1)(b), or

(ii) that the policy holder (being a person referred to in regulation 7(1)(b)) has ceased to be beneficially entitled to the rights conferred by the policy or contract."

(a) on or after 8th November 1999 relevant business which is neither reinsurance business nor term assurance business is transferred to an insurance company in accordance with an authorisation granted outside the United Kingdom for the purposes of - 


(i) Article 31a.2 of the first long term insurance Directive, or

(ii) Article 11 of the third long term insurance Directive,



(b) that business was entered into with a policy holder referred to in regulation 7(1)(b),

(c) that business is, immediately after the transfer, carried on by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company, and

(d) the insurance company to whom the business is transferred comes to be in possession of information making it reasonable for the company to assume either - 



(i) that there has been a change in the identity of the policy holder and the new policy holder is a person referred to in regulation 7(1)(b), or

(ii) that the policy holder (being a person referred to in regulation 7(1)b)) has ceased to be beneficially entitled to the rights conferred by the policy or contract."

" (b) the declaration prescribed in paragraph (5) below, and".

" that - 

(a) the underlying policy in relation to the business is not one in respect of which the cedant company has completed the certificate prescribed in regulation 5(4), or

(b) in relation to an underlying policy which was made in an accounting period for which regulation 5(2) to (4) did not have effect, the cedant company had complied with the requirements of regulation 5(2) as it applied for that accounting period."

(a) an insurance company has entered into relevant business which is not term assurance business,

(b) that business is reinsurance of life assurance business with a policy holder not residing in the United Kingdom who either - 


(i) is not an individual, or

(ii) if an individual, is not one falling within regulation 7(1)(b)(i) or (ii),



(c) the underlying policy in relation to that business was effected either by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company, and

(d) the underlying policy in relation to that business was made on or after 8th November 1999.

    (2) The business shall be overseas life assurance business where the insurance company obtains from the cedant company - 

(a) the certificate prescribed in paragraph (3) below, and

(b) the undertaking prescribed in paragraph (4) below.

    (3) The certificate prescribed is a certificate that the cedant company has complied with the requirements of regulation 7A(3).

    (4) The undertaking prescribed is an undertaking that the cedant company will notify the insurance company if the cedant company comes to be in possession of information making it reasonable for the cedant company to assume that - 

(a) any part of the certificate prescribed in paragraph (4) or (5) of regulation 7A, as the case may be, has ceased to be true, or

(b) the underlying policy in relation to the business has ceased to be life assurance business with a policy holder who was not residing in the United Kingdom at the time the policy or contract was made or at any time within six months thereafter, or

(c) the underlying policy holder, not being the person with whom the policy or contract was originally effected, was residing in the United Kingdom at the time the underlying policy was made or at any time thereafter.

    (5) The insurance company shall obtain the certificate prescribed in paragraph (3) above and the undertaking prescribed in paragraph (4) above before the date on which it makes its company tax return for the accounting period in which the reinsurance arrangement was made."

     " either - 


(i) that there has been a change in the identity of the underlying policy holder and the new underlying policy holder is a person referred to in regulation 7(1)(b), or

(ii) that the underlying policy holder (being a person referred to in regulation 7(1)(b)) has ceased to be beneficially entitled to the rights conferred by the policy or contract."

(a) on or after 8th November 1999 relevant business which is not reinsurance business is transferred to an insurance company in accordance with an authorisation granted outside the United Kingdom for the purposes of - 


(i) Article 31a.2 of the first long term insurance Directive, or

(ii) Article 11 of the third long term insurance Directive, and



(b) that business is, immediately after the transfer, carried on by an insurance company resident in the United Kingdom at or through a branch outside the United Kingdom."

" being neither - 

(a) the person with whom the policy or contract was originally effected, nor

(b) a person to whom the rights conferred by the policy or contract have been assigned in circumstances where the assignment did not constitute a chargeable event within the meaning of section 540, 542 or 545, nor

(c) a personal representative in whom those rights have been vested by operation of law".

     " and

(c) that business is with a policy holder referred to in regulation 7(1)(b)."

(a) on or after 8th November 1999 relevant business which is not reinsurance business is transferred to an insurance company in accordance with an authorisation granted outside the United Kingdom for the purposes of - 


(i) Article 31a.2 of the first long term insurance Directive, or

(ii) Article 11 of the third long term insurance Directive,



(b) that business has not been treated by the transferor as relating to overseas life assurance business,

(c) that business is, immediately after the transfer, carried on either by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company, and

(d) that business is with a policy holder referred to in regulation 7(1)(b)."

" being neither - 

(a) the person with whom the policy or contract was originally effected, nor

(b) any person to whom the rights conferred by the policy or contract have been assigned in circumstances where the assignment did not constitute a chargeable event within the meaning of section 540, 542 or 545, nor

(c) a personal representative in whom those rights have been vested by operation of law".

(a) an insurance company has entered into relevant business which is not reinsurance business,

(b) that business is with a policy holder not residing in the United Kingdom who either - 


(i) is not an individual, or

(ii) if an individual, is not one falling within regulation 7(1)(b)(i) or (ii),



(c) the policy or contract for that business was effected either by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company, and

(d) the policy or contract was made on or after 8th November 1999.

    (2) This regulation also applies where - 

(a) on or after 8th November 1999 relevant business which is not reinsurance business is transferred to an insurance company in accordance with an authorisation granted outside the United Kingdom for the purposes of - 


(i) Article 31a.2 of the first long term insurance Directive, or

(ii) Article 11 of the third long term insurance Directive,



(b) that business has not been treated by the transferor as relating to overseas life assurance business,

(c) that business is with a policy holder not residing in the United Kingdom who either - 



(i) is not an individual, or

(ii) if an individual, is not one falling within regulation 7(1)(b)(i) or (ii), and



(d) that business is, immediately after the transfer, carried on by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company.

    (3) Subject to paragraph (4) below, the territory in which the policy holder was residing at the time the policy or contract was made or, where paragraph (2) above applies, transferred shall be the territory specified in the certificate prescribed in paragraph (4) of regulation 7A or, as the case may be, paragraph (5) of that regulation.

    (4) Where, at the time the policy or contract was made or transferred or at any time within eighteen months thereafter, the company was in possession of information making it reasonable for the company to assume that the policy holder was residing in the United Kingdom at the time the policy or contract was made or transferred or at any time within twelve months thereafter, the territory in which the policy holder was residing at the time the policy or contract was made or transferred shall be the United Kingdom.

    (5) Where, pursuant to paragraph (3) or (4) above, a policy holder has been treated as residing in a particular territory at the time the policy or contract was made or transferred, the territory in which the policy holder is residing at any time thereafter shall, subject to paragraph (6) below, be that same territory.

    (6) Subject to paragraph (4) above, where at any time after the policy or contract was made or transferred the company comes to be in possession of information making it reasonable for the company to assume that the policy holder, being neither - 

(a) the person with whom the policy or contract was originally effected, nor

(b) a person to whom the rights conferred by the policy or contract have been assigned in circumstances where the assignment did not constitute a chargeable event within the meaning of section 540, 542 or 545, nor

(c) a personal representative in whom those rights have been vested by operation of law,

was residing in the United Kingdom at the time he became the policy holder or at any time thereafter, the territory in which the policy holder is residing shall, from the date on which it is reasonable for the company so to assume, be the United Kingdom."

" being neither - 

(a) the person with whom the policy or contract was originally effected, nor

(b) a person to whom the rights conferred by the policy or contract have been assigned in circumstances where the assignment did not constitute a chargeable event within the meaning of section 540, 542 or 545, nor

(c) a personal representative in whom those rights have been vested by operation of law".

     " and

(c) the underlying policy holder in relation to that business is a person referred to in regulation 7(1)(b)."

" being neither - 

(a) the person with whom the policy or contract was originally effected, nor

(b) a person to whom the rights conferred by the policy or contract have been assigned in circumstances where the assignment did not constitute a chargeable event within the meaning of section 540, 542 or 545, nor

(c) a personal representative in whom those rights have been vested by operation of law".

(a) an insurance company has entered into relevant business,

(b) that business is reinsurance of life assurance business with a policy holder not residing in the United Kingdom who either - 


(i) is not an individual, or

(ii) if an individual, is not one falling within regulation 7(1)(b)(i) or (ii),



(c) the underlying policy in relation to that business was effected either by an insurance company resident in the United Kingdom otherwise than at or through a branch outside the United Kingdom, or by an overseas life insurance company, and

(d) the underlying policy in relation to that business was made on or after 8th November 1999.

    (2) Subject to paragraph (3) below, the territory in which the underlying policy holder was residing at the time the underlying policy was made shall be the territory specified in the certificate prescribed in paragraph (4) of regulation 7A or, as the case may be, paragraph (5) of that regulation.

    (3) Where, at the time the underlying policy was made or at any time within eighteen months thereafter, the company was in possession of information making it reasonable for the company to assume that the underlying policy holder was residing in the United Kingdom at the time the underlying policy was made or at any time within twelve months thereafter, the territory in which the underlying policy holder was residing at the time the underlying policy was made shall be the United Kingdom.

    (4) Where, pursuant to paragraph (2) or (3) above, an underlying policy holder has been treated as residing in a particular territory at the time the underlying policy was made, the territory in which the underlying policy holder is residing at any time thereafter shall, subject to paragraph (5) below, be that same territory.

    (5) Subject to paragraph (3) above, where at any time after the underlying policy was made the company comes to be in possession of information making it reasonable for the company to assume that the underlying policy holder, being neither - 

(a) the person with whom the policy or contract was originally effected, nor

(b) a person to whom the rights conferred by the policy or contract have been assigned in circumstances where the assignment did not constitute a chargeable event within the meaning of section 540, 542 or 545, nor

(c) a personal representative in whom those rights have been vested by operation of law,

was residing in the United Kingdom at the time he became the underlying policy holder or at any time thereafter, the territory in which the underlying policy holder is residing shall, from the date on which it is reasonable for the company so to assume, be the United Kingdom."

" (aa) treats an underlying policy as relating to overseas life assurance business in the circumstances prescribed in regulation 9 where the insurance company has not obtained the certificate prescribed in regulation 9(3) or the undertaking prescribed in regulation 9(4) within the period limited in regulation 9(5), or".

" (ba) treats an underlying policy as relating to overseas life assurance business in the circumstances prescribed in regulation 10A(1) where the insurance company has not obtained the certificate prescribed in regulation 10A(3) or the undertaking prescribed in regulation 10A(4) within the period limited in regulation 10A(5), or".

(a) does not treat a policy or contract as relating to overseas life assurance business in the circumstances prescribed in regulation 5(1) or (1A), and

(b) has not completed the certificate prescribed in regulation 5(4) within the period limited in regulation 5(8).

    (2) The company shall treat the policy or contract as relating to overseas life assurance business from the date the policy or contract was made or transferred.

    (3) All necessary adjustments, whether by way of assessment or otherwise, shall be made to give effect to paragraph (2)."

(a) the case concerned falls within paragraph (1)(e) above,

(b) section 431D(7) applied to the policy or contract when it was made or transferred, or the underlying policy when it was made,

(c) the case falls within paragraph (1)(e) above by reason of the fact that, at some time that is - 


(i) more than three years after the date on which the policy or contract was made or transferred, or the underlying policy was made, but

(ii) is not earlier than 8th November 1999,



the number of persons for or in respect of whom benefits were to be provided under the policy or contract, or the underlying policy, and who were not relevant overseas employees within the meaning of section 431D(8), became a not insignificant number ("the relevant number") for the purposes of section 431D(7), and

(d) the relevant number has at no time exceeded the number which is equal to twenty per cent. of the total number of persons for or in respect of whom benefits are to be provided under the policy or contract or the underlying policy."