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HMRC internal manual

Insurance Premium Tax

HM Revenue & Customs
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Procedures: waiver of requirement to submit IPT returns

  1. Insurers writing only *de minimis *policies must still confirm their liability and intention to register (they are receiving taxable premiums).
  2. They must submit a written request for exemption from having to submit returns, confirming that they expect all taxable business to be below the *de minimis *limit.
  3. These requests should include:
  • the class(es) of business written and the basis for the *de minimis *request;
  • the value of the taxable and exempt business, the total premium, the largest individual premium, and the highest proportion of any premium represented by the taxable, and exempt, business - to confirm the insurer’s understanding of the *de minimis *limit.
  1. Any requests received directly by CCU will be passed to LIPTOs for a decision.
  2. LIPTOs should, using the evidence available and any local knowledge of the insurer, consider the exemption request. (If necessary, contact the insurer to resolve any uncertainty).
  3. The information required and the level of investigation needed will vary depending on the local knowledge of each insurer.
  4. If the trader applied to CCU for waiver of the requirement to register, the LIPTO only needs to send a memo to CCU.
  5. If the trader wrote directly to the LIPTO, the memo to CCU should be supported by relevant copy papers, i.e. a copy of the application for waiver. All decisions must be notified to CCU in writing. (Once their action is complete, CCU will return all paperwork to the LIPTO).
  6. Local IPT offices should maintain a record of all waivers of the requirement to submit returns. This record should be reviewed periodically to confirm the waiver still applies. These insurers remain registrable persons (by virtue of the fact that they receive taxable premiums), and as such we are entitled to visit them.
  7. CCU will issue an approval letter - IPT 8 or a refusal letter - IPT 8A.