IPT – registration requirements

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • IPT – registration requirements
  • Registering for IPT
  • IPT registration – special circumstances
  • Transfer of a business as a going concern

This guidance note provides an overview of the IPT registration requirements and procedure if a business is required to register for IPT and should be read in conjunction with the following guidance notes:

FA 1994, ss 48 - 74, Sch 6A, Sch 7 and Sch 7A; Insurance Premium Tax Regulations 1994, (SI 1994/1774); HMRC Notice IPT1 ; IPT04900; 2006/112/EC , Article 401; De Voil Indirect Tax Service V18.132 (subscription sensitive)
  • Insurance Premium Tax (IPT) – introduction
  • IPT – exemptions and risk management
  • IPT – supplies liable to the higher rate
  • IPT – apportioning premiums and the de minimis
  • IPT – accounting requirements
  • IPT – returns, payments and penalties
Registering for IPT

If a business that is acting as an insurer receives premiums, or intends to receive premiums, that are liable to IPT then it will be required to register and account for IPT. Unlike VAT, there is no turnover threshold for IPT.

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If the business only receives premiums that relate to contracts that are exempt from IPT then there is no requirement to register for IPT. Please see the IPT – exemptions and risk management guidance note for more information on the exemptions.

An intermediary who is arranging contracts of insurance that are liable to IPT may also need to register and account for IPT.

Businesses that receive insurance premiums that are partly liable to IPT may not need to register if the taxable premiums come within the IPT de minimis amounts, see the IPT – apportioning premiums and the de minimis guidance note for more information.

When must a business register?

Businesses that intend to receive insurance premiums that are liable to IPT (taxable premiums) must notify HMRC

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