IPT audit assurance: IPT calculations: liability
The insurer’s personnel who will be able to assist you in your checks on liability will be the underwriting staff rather than the accounts staff. You will need to relate the information obtained from the underwriting area to that from the accounting area.
The procedures used by the insurer to code the various policies for IPT liability should be determined. The effectiveness of the procedures should be tested by selecting a range of contracts or slips for scrutiny. It is only by looking at an insurance contract that you will be able to confirm the liability of a premium.
Guidance on the IPT liability of premiums is given in IPT03000. If there is any doubt about the IPT liability of a premium, reference should be made to IPT03000 and Schedule 7A, Finance Act 1994. If you cannot resolve the problem, you should contact the UoE (see IPT08100).