Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from insurance

CR 3B: Lloyd’s of London: income from life insurance premiums

You could also call this:

“New Zealand tax on Lloyd's of London life insurance premiums”

If you pay for a life insurance policy from Lloyd’s of London, some of the money you pay might be counted as income in New Zealand. This rule applies when:

You buy the policy from Lloyd’s of London or someone who works for them.

The policy is available to everyone, doesn’t share in the company’s profits, isn’t a savings product, and doesn’t give you regular payments.

The policy was offered or sold in New Zealand.

When these things are true, 10% of the money you pay for the policy is counted as income for Lloyd’s of London in New Zealand.

The exact amount that’s counted as New Zealand income is worked out using a rule called section YD 8B.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS32303.

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Part C Income
Income from insurance

CR 3BLloyd’s of London: income from life insurance premiums

  1. This section applies to a premium a portion of which is treated as having a source in New Zealand under section YD 8B (Apportionment of life insurance premiums derived by Lloyd’s of London) if—

  2. the policyholder pays the premium for a life insurance policy to Lloyd’s of London or an agent of Lloyd’s of London; and
    1. the life insurance policy is described in subsection (3); and
      1. the life insurance policy is offered or was offered or entered into within New Zealand.

        1. Ten percent of the gross premium derived by Lloyd’s of London is income of Lloyd’s of London.

        2. The life insurance policy referred to in subsection (1) is a life insurance policy that—

        3. is made available to the general public; and
          1. is not a profit participation policy or a savings product policy or both; and
            1. does not provide for a benefit that is an annuity.

              Notes
              • Section CR 3B: inserted, on (with effect on 1 April 2017 and applying in relation to a life insurance premium that is derived on or after that date by Lloyd’s of London), by section 25(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).