Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Insurance Premium Tax

Calculating the value of the premium: the de minimis provision: when and how to apply de minimis provision

The *de minimis *provision should be applied according to the facts known at the outset of the contract. The insurer will need to establish that:

  • the contract is a mixed (taxable and exempt) policy;
  • the entire premium paid for the policy is £500,000 or less (except cases shown in IPT05950);
  • the premium, when apportioned, shows a taxable element of 10% or less.

This apportionment must be carried out on a ‘just and reasonable’ basis.