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HMRC internal manual

Insurance Premium Tax

From
HM Revenue & Customs
Updated
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Overview and the law: scope of IPT

Section 49 of the Finance Act 1994 defines the scope of the tax:

Tax shall be charged on the receipt of a premium by an insurer if the premium is received-

(a) under a taxable insurance contract, and

(b) on or after 1st October 1994

Guidance on the key terms ‘premium’, ‘insurer’ and ‘taxable insurance contract’ can be found elsewhere in IPT as follows:

Key terms  Guidance
Premium IPT05150
Insurer IPT03500
Insurance contracts IPT03700 provides a definition of insurance and explains how to determine whether there is a contract of insurance
Liability (taxable insurance contracts) Dealt with in IPT04000