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HMRC internal manual

Insurance Premium Tax

Overview and the law: how to determine whether there is a contract of insurance: roadside assistance insurance

Here a person enters into a contract and pays a premium, which is usually a significant element of their membership subscription. The premium secures a right to benefits in kind such as repairs if, for example, a vehicle breakdown occurs. These arrangements constitute an insurance contract and the premiums paid to the service providers (AA, RAC, etc.) are liable to IPT.