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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: Insurance Premium Tax: Who is liable to pay the debt? The taxable intermediary

The requirement for certain intermediaries (such as travel agents selling holidayinsurance, or shops selling extended warranties on electrical goods), to register for IPT,is both a deterrent and an anti-avoidance measure.

As such, based on current practices, it is not likely to result in a significant number ofintermediaries having to register for IPT.

However, if they register they are the taxable person and are liable to render returns andpay tax due. Section 52A (3) of the finance Act 1994, provides:

“Tax charged by virtue of subsection (2) above shall be payable by the taxableintermediary as if he were the insurer under the contract mentioned in paragraph (a) ofthat subsection.”

Taxable intermediaries doing business in the UK and having no establishment in the UK mustappoint a tax representative (s.57 of the Finance Act 1994) (DMBM540345).