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HMRC internal manual

Insurance Premium Tax

HM Revenue & Customs
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Calculating the value of the premium: separate contracts: accounting for the IPT on amounts charged under separate contracts

The anti-avoidance provisions outlined in IPT05160 bring certain amounts charged under separate contracts back within the definition of premium for IPT purposes and therefore the insurer needs to be notified of these amounts by the intermediary so that IPT can be declared on the full amount of premium charged. The tax point is determined in the same way as it is for all the premium received or written by the insurer in a particular accounting period dependent on the insurer’s chosen tax accounting method (see IPT07000). Charges caught by this provision are premium and should be reported on the IPT Return by the insurer.