Income Tax (Trading and Other Income) Act 2005 section 533

Meaning of "comparable EEA tax charge"

Section 533 defines what constitutes a "comparable EEA tax charge" for the purposes of claiming relief under section 532 on gains from life insurance policies and contracts issued by European Economic Area insurers.

• A comparable EEA tax charge must be imposed on the insurer under the laws of an EEA territory outside the UK, where the insurer is recognised as a company, managed, or treated as resident or domiciled
• The tax charge must apply at a rate of at least 20% on the amounts taxable in the insurer's hands, excluding investment income that benefits from generally available special reliefs or exemptions
• The charge must not be calculated by reference to the insurer's profits, but must instead disallow the deduction of sums payable and liabilities under policies of the same class when calculating the chargeable amount
• All six conditions (A to F) must be met for a tax charge to qualify as comparable, ensuring the EEA insurer faces a tax burden broadly equivalent to that applying to UK insurers