The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This note 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; HMRC Notice IPT1 ; IPT03000; 2006/112/EC , Article 401; Financial Services and Markets Act 2000 (subscription sensitive); Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544; Financial Services and Markets Act 2000 (Law applicable to Contracts of Insurance) Regulations 2001, SI 2001/2635 (subscription sensitive); De Voil Indirect Tax Service V18.101 (subscription sensitive)
IPT is a tax that is collected on premiums payable in respect of taxable contracts of insurance. IPT is not a turnover tax and is therefore not prohibited under 2006/112/EC , Article 33. This was confirmed in the CJEU decision in Gil. See Gil Insurance and others (C-308/01 ).
IPT is levied at two different rates depending on the type of taxable insurance supplied:
The previous rates of IPT were:
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