SCHEDULES
F3SCHEDULE 7A INSURANCE PREMIUM TAX: CONTRACTS THAT ARE NOT TAXABLE
PART I DESCRIPTIONS OF CONTRACT
Contracts relating to the provision of financial facilities
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1
A contract falls within this paragraph if it relates only to the provision of a relevant financial facility and the conditions mentioned in sub-paragraph (2) below are satisfied.
2
The conditions referred to in sub-paragraph (1) above are that—
a
the person to whom the relevant financial facility is provided is an overseas customer;
b
it is provided in order that he may comply with a legally binding obligation to receive a relevant supply of goods, or a supply of services, or both, from a person carrying on business F1. . .; and
F2c
the contract of insurance insures against risks arising from or in relation to either or both—
i
credit,
ii
suretyship.
3
For the purposes of this paragraph a relevant financial facility is—
a
the making of an advance;
b
the issue of a letter of credit or acceptance of a bill of exchange;
c
the giving of a guarantee or bond; or
d
any other similar transaction entered into in order to provide a customer with the means to pay, or a supplier with the right to call upon a third party for, the consideration for goods or services.
Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5