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HMRC internal manual

Insurance Premium Tax

Procedures: TOGC - transfer of existing registration

  1. These procedures apply where a business is transferred from one trader to a new, separate trader, or where the status of a registered person carrying on a business changes, e.g. from a branch of an overseas insurer to a separate UK company.
  2. If any requests for TOGC are received, a Form IPT 68 should be issued to the transferee i.e. the new owner.
  3. It may seem an obvious point, but a TOGC must have occurred.
  4. The transferor should not have already deregistered (the deregistration takes effect with the TOGC). If the previous owner has already deregistered, the registration number can be ‘resurrected’, provided there is no gap in the dates (i.e. between deregistration and the new owner taking over the registration number).
  5. The transferee must not already be registered (their registration is effected in conjunction with the TOGC). The transferee must complete and submit an IPT1.
  6. LIPTOs should consider the question of belated notification (before 1 April 2010) and the question of failure to notify (from 1 April 2010) whether a penalty is appropriate.
  7. LIPTOs should consider whether there has been any loss of tax.
  8. All records should be retained by the new owner - including those previously held by the transferor.
  9. If a new IPT registration number is required (i.e. deregistration and a new registration), this is not a TOGC, and should be dealt with in the normal way.
  10. If a TOGC has occurred but has not been notified, arrange for the appropriate forms to be completed immediately.
  11. If a TOGC is requested, but the new owner has already registered separately, this is not a TOGC. LIPTOs should arrange for the cancellation of the previous owner’s registration, ensuring there are no breaks in continuity of accounting for the tax.

All forms are processed on receipt at BTOps without reference to the LIPTO. LIPTOs for the transferor and transferee will be advised of the change. If there is a change of address to another local IPT office area, the IPT folder must be transferred.