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HMRC internal manual

Insurance Premium Tax

HM Revenue & Customs
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Accounting for Insurance Premium Tax: unjust enrichment: the reimbursement scheme: assessment provisions

To ensure that insurers comply with the terms of refund agreements they have reached with the Commissioners, paragraph 14(2) of Sch 5, FA1997 allows HMRC to assess those insurers who have failed to reimburse their customers in the agreed manner.

The IPT legislation also gives HMRC powers to apply a penalty if the requirements to repay the Commissioners are contravened (paragraph 4(2) of Sch 5, FA 1997 and para 17(1)(c), Sch 7, FA 1994 refer). No IPT-registered person should receive a penalty without first receiving a warning letter. Information relating to penalties can be found in the Compliance Handbook (CH).