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Insurance Premium Tax

Changes will be made to the definition of an insurance premium for IPT purposes to ensure that a payment in respect of a right to require an insurer to provide insurance, is regarded as an insurance premium.

A consultation document will be issued as part of a review of the requirement for overseas insurers to appoint a tax representative.

Our view
It is no surprise that HMRC are seeking to clarify the position on IPT avoidance arrangements in advance of any litigation.