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HMRC internal manual

Insurance Premium Tax

From
HM Revenue & Customs
Updated
, see all updates

Calculating the value of the premium: how the value of ‘any risk’ is determined

To determine the value of ‘any risk’, the underwriter, using actuarial tables, other statistical information and their professional judgment, rates risks according to:

  • the amount for which the insurer is liable - usually expressed as the sum insured or a limit of liability;
  • the likely claims ratio (the possibility of loss occurring).