Finance Act 1994 (c. 9)

Part III U.K. Insurance Premium Tax

Miscellaneous U.K.

[F1 69A Part-exempt contracts: excepted premiums U.K.

(1) Where—

(a) an insurer at any time (“the relevant time”) receives a premium under a part-exempt contract, and

(b) the conditions in subsection (2) are met,

the chargeable amount in relation to the premium is nil.

(2) The conditions are that—

(a) the relevant total is £500,000 or less, and

(b) 10% or less of the relevant total is attributable to any non-exempt matter or matters.

(3) For this purpose “the relevant total” is the total of—

(a) the amount of the premium,

(b) the amount of any other premium received by the insurer under the contract at or before the relevant time, and

(c) the amount of any premium that, at the relevant time, the insurer has a present or future right to receive under the contract.

(4) In applying subsection (2)(b), any amount that is included in a premium as being referable to tax (whether or not the amount corresponds to the actual amount of tax payable in respect of the premium) shall be taken to be wholly attributable to a non-exempt matter.

(5) Subject to that, any attribution under subsection (2)(b) is to be made on such basis as is just and reasonable.

(6) For the purposes of this section—

(a) an “exempt matter” is any matter such that, if it were the only matter for which the contract provided cover, the contract would not be a taxable insurance contract, and

(b) a “non-exempt matter” is a matter which is not an exempt matter.

(7) In this Part—

• “excepted premium” means a premium under an insurance contract in relation to which, by virtue of subsection (1), the chargeable amount is nil;

• “part-exempt contract” means an insurance contract that provides–

  (a)

  cover for one or more exempt matters, and

  (b)

  cover for one or more non-exempt matters.]

Textual Amendments

F1 Ss. 69A-69D inserted (1.3.2012) by The Enactment of Extra-Statutory Concessions Order 2012 (S.I. 2012/266), arts. 1, 2(5)