Federal Excise Tax (FET) Exempt Insurers
The new UK/US tax Treaty came into effect on 1st January 2004, and UK companies will now have determined their best course of action particularly in relation to entering into a closing agreement with the Internal Revenue Service (IRS). A closing agreement will permit the IRS to audit books and records to evidence that there has been no FET avoidance (conduit arrangements) or FET liability.
It is not a condition precedent that a UK established company takes any action to be entitled to benefit from the treaty. A company can confirm in a written statement that they are an established UK company and entitled to benefit under the treaty. This course of action is being adopted by a limited number of companies. It is also available to those companies who have applied for a closing agreement but await finalisation by the IRS.
The following Ordinary and Affiliate IUA members have received a closing agreement under the US/UK Treaty:
Alea London Ltd
Allianz Cornhill Insurance Plc
Arch Insurance Company (Europe) Limited
Aspen Insurance UK Ltd
Catlin Insurance Company (UK) Ltd
CNA Insurance Company Limited
Endurance Worldwide Insurance
GE Frankona Reinsurance Ltd
GE Specialty Insurance (UK) Ltd
Great Lakes Reinsurance (UK) Plc
ING Re UK Ltd
International Insurance Company of Hannover Ltd
Liberty Mutual Insurance Europe
Markel International Insurance Company Ltd
QBE International Insurance Ltd
Royal & SunAlliance Insurance Plc
SCOR UK Company Ltd
SR International
Swiss Reinsurance UK Ltd
Tokio Marine Europe Insurance Limited
Tokio Marine Global Limited
Zurich Specialities London Ltd
The following IUA members are currently applying for a closing agreement:
Groupama Transport
The following IUA members have confirmed that they qualify for all of the benefits of the new UK-US Double Taxation Treaty (W8 Ben):
Ace European Group (previously Ace-INA)
Chartis Insurance UK Limited
Chevanstell Ltd
The following IUA members are US companies or have confirmed to IUA and/or Lloyd’s that they are subject to other US double taxation treaties:
Allianz Global Corporate & Specialty AG (closing agreement received)
Assicurazioni Generali S.p.A. (UK Branch)
AXA Corporate Solutions Assurances SA
Everest Reinsurance Ltd
Federal Insurance Company
GE Frankona Ruckversicherungs Aktiengesellschaft
Hannover Re
Houston Casualty Company Ltd
Munich Reinsurance Company
New Hampshire Insurance Company
Sirius International Insurance Company (UK Branch) (closing agreement received)
Zurich Insurance Company (Swiss Company) (closing agreement received)
* to be confirmed
The following IUA members for 2004 have informed us that they are not affected and therefore are taking no action:
Chubb Insurance Company of Europe
Ecclesiastical Insurance Office Plc
Faraday Insurance Company
Global Aerospace Underwriting Managers (though consortium members may have applied)
New India Assurance Company Ltd
QBE Reinsurance (Europe) Ltd
XL Re
IUA has been in close contact with the London Market Brokers Committee (LMBC), the Council of Insurance Agents and Brokers (CIAB) and Lloyd’s on this matter. Lloyd’s itself has already entered into a closing agreement with the Internal Revenue Service (IRS).