Commentary

Manchester and Salford Hospital Saturday Fund v C & E Comrs

Part V18 Insurance Premium Tax

Manchester and Salford Hospital Saturday Fund v C & E Comrs

Manchester and Salford Hospital Saturday Fund v C & E Comrs

[1999] STC 649

IPT - chargeable amount - reduced chargeable amount - contract providing cover for exempt and non-exempt matters - chargeable amount calculated by deducting from premium such part of premium as attributable to exempt matters - exempt matters consisting of long-term business including permanent health business - fund providing cash benefits to contributors covering periods spent in hospital or convalescing due to illness or injury as result of accident - fund reserving right to vary rate of contribution and range and rates of benefits - whether fund carrying out permanent health business - whether effecting and carrying out contract of insurance providing specified benefits against risk of incapacity in consequence of injury resulting from accident or in consequence of sickness or infirmity and expressed to be in effect without limit of time - FA 1994 s 69 - ICA 1982 Sch 1 Class IV.

Insurance premium tax was introduced by FA 1994 and was chargeable on the receipt of a premium by an insurer if the premium was received under a taxable insurance contract. By FA 1994 s 50 the chargeable amount was such amount as, with the addition of the tax chargeable, was equal to the amount of the premium. By s 69 where a contract provided cover for exempt and non-exempt matters, the chargeable amount was calculated by deducting from the amount of the premium such part of the premium as was attributable to the exempt matters.

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