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HMRC internal manual

Insurance Premium Tax

Assessments: Remission of tax

The concept of “misdirection” was replaced on 1 April 2009, any claims for remission of tax due to misleading or incorrect advice should now be considered in accordance with the principles in the Admin Law Manual (ADML).

Pre-1 April 2009:

IPT09500 deals with these issues generally.

Where you discover an error during a visit you will (subject to what is said below about fraud) discuss that error with the insurer. At that stage the insurer may make allegations of misdirection or claim misunderstanding. You should examine such claims before issuing an assessment. If you are satisfied that such a claim is justified, you should take action according to the guidance in IPT09500. Do not make an assessment in such a case.

Where an insurer claims to have been misdirected in respect of one error, but does not make that claim in respect of a separate error, you should assess for that second error.

Where an insurer only makes a claim of misdirection after an assessment has been issued, you should take action according to the guidance in IPT09500.