UK Act of Parliament 1988 United Kingdom

Income and Corporation Taxes Act 1988 (historical marginal relief formula basis)

What this means for your business

3 obligations
1 penalties
2 guides
Enforced by
HMRC
Applies to
United Kingdom
On this page
3 compliance obligations, 2 practical guides
Read full text on legislation.gov.uk

What you must do

3 compliance obligations under this legislation.

Management duties 1

Ensure overseas insurer’s tax duties are complied with

Unlimited fine

If you act as a tax representative for an overseas insurer, you must make sure that all UK tax obligations that apply to that insurer are met – either by yourself or by arranging for the insurer to do so. This responsibility applies to every relevant duty that arises after you are appointed, and you can be held personally liable if the duties are not discharged.

Any Person s.552B HMRC When you are appointed as the tax representative for an overseas insurer …

Registration and licensing 1

Register as a qualifying lender with HMRC

If your business accepts deposits or carries out general insurance contracts (or is a 90 % subsidiary of such a business), you must apply to HMRC to be placed on the register of qualifying lenders. Once registered you will be treated as a qualifying lender for tax purposes, and you must keep the registration up to date and respond to any changes or cancellations notified by HMRC.

Trader/Business s.376A HMRC When your business meets the definition of a qualifying lender (e.g., has …

Reporting and filing 1

Submit claim for provisional repayment of pension‑related tax

If your insurance company runs a pension business, you must claim a provisional repayment for each repayment period (up to three months or the accounting period). The claim must be made on the form set by HMRC and include the correct calculation of tax you’re entitled to recover.

Trader/Business Schedule 19AB HMRC Each provisional repayment period while carrying on pension business (i.e. every 3‑month …

Penalties for non-compliance

1 penalty under this legislation. 1 carry an unlimited fine.

Unlimited fine

Ensure overseas insurer’s tax duties are complied with

Unlimited fine

s.552B Penalises: Ensure overseas insurer’s tax duties are complied with

Practical guidance

Our guides explain how to comply with the requirements above.

Corporation Tax basics

Understanding and paying Corporation Tax.

Corporation tax rates and small profits relief

Understanding the Corporation Tax rate structure following Finance Act 2022 changes. Covers the 25% main rate, 19% small profits rate, …

Sections and provisions

500 classified provisions from this legislation.

3 Duties 2 Offences and penalties 4 Powers 35 Definitions 19 Exemptions

Duties 3

  • s.376A The register of qualifying lenders. above
  • s.552B Duties of overseas insurers’ tax representatives. failure
  • Schedule 19AB Entitlement to certain payments on account carrying on pension business

Offences and penalties 2

  • s.653 Information: penalties.
  • s.827 VAT penalties etc.

Powers 4

  • Schedule 14 PROVISIONS ANCILLARY TO SECTION 266
  • s.253 Power to modify or replace section 234(5) to (9) and Schedule 13.
  • s.378 Supplementary regulations.
  • s.825 Repayment supplements: companies.

Definitions 35

  • Schedule 4 Interpretation
  • Schedule 17 DIVISION OF ACCOUNTING PERIODS COVERING 1st APRIL 1987 the straddling period the component accounting periods 1986 accounting period
  • Schedule 20 QUALIFYING INVESTMENTS the primary period unapplied non-qualifying expenditure non-taxable sums
  • Schedule 28 DISPOSALS OF INTERESTS IN NON-QUALIFYING FUNDS material disposal
  • s.45 Interpretation of Part III.
  • s.56A Disposal or exercise of rights in pursuance of deposits. certificate of deposit
  • s.140 Further interpretation of sections 135 to 139.
  • s.187 Interpretation of sections 185 and 186 and Schedules 9 and 10. the relevant provisions capital receipt scheme
  • s.251 Interpretation of sections 249 and 250.
  • s.251D Interpretation of sections 251A to 251C
  • s.254 Interpretation of Part VI.
  • s.267 Qualifying policies.
  • s.312 Interpretation of Chapter III.
  • s.370 Relevant loan interest. relevant loan interest
  • s.376 Qualifying borrowers and qualifying lenders.
  • s.413 Interpretation of Chapter IV.
  • s.444AL Interpretation of sections 444AF to 444AK
  • s.468H Interpretation.
  • s.508Bn Interpretation of section 508A.
  • s.576L Interpretation of Chapter
  • ... and 15 more definitions

Exemptions 19

  • Schedule 3 PUBLIC REVENUE DIVIDENDS ETC. PAYABLE TO THE BANK OF ENGLAND OR THE BANK OF IRELAND OR ENTRUSTED FOR PAYMENT TO THE BANK OF ENGLAND, THE BANK OF IRELAND OR THE NATIONAL DEBT COMMISSIONERS
  • Schedule 11 Introductory
  • Schedule 15 QUALIFYING POLICIES
  • Schedule 23 Preliminary
  • Schedule 25 Cases where section 747(3) does not apply
  • s.43E Interposed lease: exceptions, &c.
  • s.43C Transfer of rent: exceptions, &c.
  • s.161 Exceptions from section 160.
  • s.186 Approved profit sharing schemes.
  • s.369 Mortgage interest payable under deduction of tax.
  • s.420 Exceptions from section 419.
  • s.468N Deduction of tax (mixed funds).
  • s.506B Section 506A: exceptions
  • s.614 Exemptions and reliefs in respect of income from investments etc. of certain pension schemes.
  • s.659E Treatment of income from property investment LLPs
  • s.828 Orders and regulations made by the Treasury or the Board.
  • Determination of profits attributable to permanent Determination of profits attributable to permanent establishment: supplementary provisions
  • Schedule 5AA Charge to tax etc.
  • Schedule 28B Venture Capital Trusts: Meaning of “qualifying holdings”