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HMRC internal manual

Insurance Premium Tax

From
HM Revenue & Customs
Updated
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IPT audit assurance: legal provisions: the law

This section briefly outlines what legal powers officers hold.

Before 1 April 2010

All references in this sub-section are to the Finance Act 1994, as amended.

###   ### Power or legal requirement ### Location of relevant legal provision
     
1 Powers to require registrable insurers to keep records Regulation 16, IPT Regulations 1994 (SI 1994/1774)
2 Powers to require the insured to keep records when subject to liability notice action Regulation 41, IPT Regulations 1994 (SI 1994/1774)
3 Powers to require anyone (employees, directors, etc) concerned in an insurance business to furnish information about taxable contracts Subparagraph (1), Paragraph 2, Schedule 7
4 Powers to require brokers and agents to furnish information about insurance contracts (There is no provision in IPT law requiring a broker, or other non-insurer, to keep records, except in 2 above.) Subparagraph (2), Paragraph 2 Schedule 7
5 Powers to require information from an insured business Subparagraph (3), Paragraph 2 Schedule 7
6 Powers to require anyone concerned in an insurance business to produce records about insurance contracts for inspection Subparagraph (1), Paragraph 3 Schedule 7
7 Powers to require brokers to produce records about insurance contracts for inspection Subparagraph (2), Paragraph 3 Schedule 7
8 Powers to require production of records from a person with a lien over the records Subparagraph (4), Paragraph 3 Schedule 7
9 Powers to make copies or take extracts of records Subparagraph (6), Paragraph 3 Schedule 7
10 Powers to remove records Subparagraph (7), Paragraph 3 Schedule 7
11 Power to enter at any reasonable time the premises of an insurer, broker or an insured business Subparagraph (1), Paragraph 4 Schedule 7
12 Power to enter by force in event of a serious fraud Subparagraph (2)(a) and (b), Paragraph 4, Schedule 7
13 Power, after entry of premises by warrant, to seize and remove documents or other things Subparagraph (3)(b), Paragraph 4, Schedule 7
14 Power, after entry by warrant, to search people Subparagraph (3)(c), Paragraph 4, Schedule 7
15 Power of arrest Subparagraph (6), Paragraph 4, Schedule 7
16 Powers of access to third party information (bank records etc) in the context of offence investigation Paragraph 4A, Schedule 7
17 Powers of assessment Section 56(1), Finance Act 1994
18 Power to require security Paragraph 24, Schedule 7

From 1 April 2010

A new framework for Information and Inspection Powers was put into operation by HMRC for IPT. Please refer to Compliance Handbook (CH21060) for further details.