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HMRC internal manual

Insurance Premium Tax

From
HM Revenue & Customs
Updated
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Maintaining the IPT register: registration: rules for waiver of requirement to submit IPT returns

Where an insurer writes policies which cover mixed (both taxable and exempt) risks but the taxable element and the premium for the total contract are below the *de minimis *limits (see IPT05900), the insurer is entitled to treat such policies as if they were wholly exempt. In those circumstances, while an insurer must still notify their liability to register for IPT, they can ask for a waiver of the requirement to submit IPT returns. In practical terms the insurer is not registered and does not receive an IPT registration number.

A premium for a contract is below the *de minimis *limits if it is £500,000 or less and 10% or less is attributable to taxable insurance.

There is more about this in IPT10050.

A periodic check on these insurers, based on the risk, may be required from time-to-time in order to ensure that they continue to be entitled to the waiver.