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Insurance Premium Tax (IPT)

Anti-avoidance legislation will be implemented with immediate effect to clarify the definition of a premium to include payments for a right to require an insurer to provide cover.


Elsewhere on IPT a formal consultation will be undertaken on the requirement for overseas insurers to appoint a UK tax representative for IPT. The consultation will also consider the introduction of an IPT registration threshold and the possible removal of the de minimis extra statutory concession.
 

Our view
The anti-avoidance legislation is intended to close a loophole which may have allowed payments for the right to require insurance to avoid a charge to IPT.

The insurance industry has lobbied for a review of the tax representative requirement and will welcome the consultation.