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HMRC internal manual

Insurance Premium Tax

Overview and the law: UK law

IPT was introduced by the Finance Act 1994, which received Royal Assent on 3 May 1994. The Finance Act 1994 Part III Section 48(1) states:

‘A tax, to be known as insurance premium tax, shall be charged in accordance with this Part.’

By *this Part *Section 48 means Part III of the Act itself. The Finance Act 1994 is organised into Parts and Chapters as well as Sections. Each Part of the Act deals with a separate tax or group of provisions. Part I Chapter IV dealt with air passenger duty and Part IV dealt with income, corporation and capital gains taxes.

Section 48(2) of the Finance Act 1994 places IPT under the *care and management *of the Commissioners of HM Customs and Excise (now HMRC).