Update to SDLT Policyholders

In May 2022, the administrators of Elite Insurance Company Limited (in administration) (“Elite”) issued an update regarding policies in relation to a Stamp Duty Land Tax (“SDLT”) mitigation planning insurance scheme underwritten by Elite, explaining that any claims against Elite under those policies were barred due to public policy concerns. However, Elite’s administrators also explained that policyholders who had paid premium to Elite in respect of those policies could, in due course, submit a claim in Elite’s administration for reimbursement of that premium.

Elite’s administrators’ view is that any claims arising out of or in connection with these policies (including any claims for return of premium) are not direct insurance claims. This is because the administrators consider these policies to be void on grounds of public policy. On that basis, any claims from policyholders in respect of these void policies would be unsecured claims in Elite’s administration.

Elite is insolvent and, based on the administrators’ current view of Elite’s financial position, direct insurance creditors are highly unlikely to receive 100 pence in the pound on their direct insurance claims. Consequently, other unsecured creditors (including policyholders who paid premium for these void policies) should not expect a dividend. However, policyholders who have paid premium to Elite in respect of these policies can still submit a claim in Elite’s administration.

Further information relating to direct insurance creditors and other unsecured creditors is contained in Elite’s administrators progress reports available here.