Dominic Stuttaford (Norton Rose Fulbright) examines a tribunal decision on how an establishment is identified under the insurance premium tax regime.
Insurance premium tax (IPT) was first introduced in October 1994. At that stage the rate of IPT was 2.5%. Since then it has become an increasingly important tax for the UK exchequer and it is currently charged at a rate of 12% with a higher rate of 20%. Further changes to the regime are likely following the consultation that launched last year and concluded in February which looked at the treatment of administration fees and how to collect the tax.
What has stayed constant is that there is an exemption from IPT for premiums paid on risks situated outside the UK. While this sounds simple it has proven difficult in practice especially when any premium covers a number of different risks or...
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Dominic Stuttaford (Norton Rose Fulbright) examines a tribunal decision on how an establishment is identified under the insurance premium tax regime.
Insurance premium tax (IPT) was first introduced in October 1994. At that stage the rate of IPT was 2.5%. Since then it has become an increasingly important tax for the UK exchequer and it is currently charged at a rate of 12% with a higher rate of 20%. Further changes to the regime are likely following the consultation that launched last year and concluded in February which looked at the treatment of administration fees and how to collect the tax.
What has stayed constant is that there is an exemption from IPT for premiums paid on risks situated outside the UK. While this sounds simple it has proven difficult in practice especially when any premium covers a number of different risks or...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
