The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides details of the types of insurance that are exempt from IPT and the IPT implications of different types of risk management. This should be read in conjunction with the following guidance notes:
FA 1994, ss 48–74, Schs 6A, 7, 7A; Insurance Premium Tax Regulations 1994, SI 1994/1774; Notice IPT 1 ― a general guide to IPT ; De Voil Indirect Tax Service V18.103 (subscription sensitive); IPT04000
All contracts of insurance will be liable to IPT unless they are specifically exempted from IPT.
The types of contracts of insurance outlined in this section will be exempt from IPT. If a contract of insurance covers exempt and taxable contracts of insurance then the premium will need to be apportioned and IPT accounted for at the relevant rate on the taxable portion. Please see the IPT ― apportioning premiums and the de minimis guidance note for more information.
According to HMRC guidance, the following contracts of insurance will be exempt from IPT:
Certain contacts of insurance that
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