Insurance Premium Tax
A User's Guide

Mark Chesham (Author)

9781910151549

Paperback / softback, published 13 February 2019

130 pages
23.4 x 15.6 x 1.1 cm, 0.453 kg

Insurance Premium Tax is a guide for practitioners and those involved in the insurance industry. It summarises how the IPT is applied in practice, the definition of an insurance contract, looks at exemptions from the tax, the application of the higher rate and issues affecting non UK risks and global policies. It also explores compliance issues such as IPT registration, the submission of returns and payment of the tax, changes in rates and the penalty regime.

• INTRODUCTION
• 1.1. Sources of information

1. WHAT IS INSURANCE PREMIUM TAX
2. 2.1. Definition
3. 2.2. Is IPT legal?
4. 2.3. Insurance contracts and insurers
5. 2.4. Taxable contracts
6. 2.5. What is a premium?
7. 2.6. Coinsurance, insurance pools and fronting
8. 2.7. Warranties and guarantees
9. 2.8. Discretionary trusts
10. 2.9. Cost plus schemes
11. 2.10. Self insurance
12. 2.11. Voluntary excesses and deductibles
    1. HIGHER RATE IPT
    2. 3.1. Introduction
    3. 3.2. Motor cars and motor cycles
    4. 3.3. Domestic Appliances
    5. 3.4. Travel insurance
    6. 3.5. Higher rate insurance and free and discounted insurance
    7. TAXABLE INTERMEDIARIES
    8. 4.1. Liability to register and account for IPT
    9. 4.2. Criteria for a person having to register
    10. 4.3. Taxable intermediary provisions
    11. 4.4. Higher rate contracts
    12. 4.5. Registration limits
    13. LOCATION OF RISK
    14. 5.1. Introduction
    15. 5.2. Risk location rules
    16. 5.3. Habitual residence
    17. 5.4. Business establishment
    18. 5.5. Unregistered vehicles
    19. 5.6. Buildings
    20. 5.7. Embassies
    21. 5.8. Travel Insurance
    22. 5.9. Apportioning multi jurisdictional risks
    23. EXEMPTIONS
    24. 6.1. Introduction
    25. 6.2. De minimis
    26. 6.3. Exemptions
    27. 6.4. Non-UK risks
    28. 6.5. Reinsurance
    29. 6.6. Long-term insurance contracts
    30. 6.7. Commercial ships
    31. 6.8. Contracts relating to the Channel Tunnel
    32. 6.9. Lifeboats and Lifeboat equipment
    33. 6.10. Commercial aircraft
    34. 6.11. International railway rolling stock
    35. 6.12. Goods in foreign or international transit
    36. 6.13. Export finance related insurance
    37. 6.14. Motability contracts
    38. 6.15. Spacecraft
    39. REGISTRATION, DE-REGISTRATION AND TOGCS
    40. 7.1. Registration –
        Introduction
    41. 7.2. Deregistration
    42. 7.3. Transfer of a going concern
    43. ACCOUNTING FOR IPT
    44. 8.1. Introduction
    45. 8.2. IPT Accounting Schemes
    46. 8.3. Bad debt relief
    47. 8.4. Adjusting for errors on IPT returns
    48. 8.5. Changes in IPT rates
    49. 8.6. Anti-forestalling provisions
    50. 8.7. Lloyd'
        s IPT procedures
    51. 8.8. Record keeping requirements
    52. 8.9. Recovering IPT paid in error
    53. PENALTIES
    54. 9.1. Introduction
    55. 9.2. Penalty for failure to notify
    56. 9.3. Late payment of tax or rendering of returns
    57. 9.4. Failure to notify a cessation of trade
    58. 9.5. Failure to produce records
    59. 9.6. Failure to appoint or nominate a tax representative
    60. 9.7. Breach a controlled goods agreement or Walking Possession Agreement in Northern Ireland
    61. 9.8. Liability of insured
    62. 9.9. Underdeclarations
    63. 9.10. Evasion of IPT
    64. 9.11. Interest
    65. 9.12. HMRC'
        s stated approach to late rendering and payment penalties
    66. 9.13. Security
    67. 9.14. Reviews and appeals
    68. APPENDIX 1: HMRC PENALTIES FOR FAILURE TO NOTIFY (FACTSHEET CC/FS11)
    69. APPENDIX 2: HMRC PENALTIES FOR INACCURACIES IN RETURNS (FACTSHEET CC/FS7A)
    70. APPENDIX 3: ""CONNECTED"" PERSONS
    71. APPENDIX 4: FORMS
    72. APPENDIX 5: EUROPEAN INSURANCE PREMIUM TAX (IPT) COMPARISON TABLE
    73. APPENDIX 6: IPT ERROR FLOWCHART