(1)This section applies where a Minister of the Crown announces a proposed increase in the rate at which tax is to be charged on a premium if it is received by the insurer on or after a date specified in the announcement (“the change date”).
(2)This section applies whether or not the announcement includes an announcement of a proposed exception from the increase (for example, for premiums in respect of risks for which the period of cover begins before the change date).
(3)Subsection (4) applies where—
(a)a premium under a contract of insurance is received by the insurer on or after the date of the announcement and before the change date, and
(b)the period of cover for the risk begins on or after the change date.
(4)For the purposes of this Part the premium is to be taken to be received on the change date.
(5)Subsection (6) applies where—
(a)a premium under a contract of insurance is received by the insurer on or after the date of the announcement and before the change date,
(b)the period of cover for the risk—
(i)begins before the change date, and
(ii)ends on or after the first anniversary of the change date (“the first anniversary”), and
(c)the premium, or any part of it, is attributable to such of the period of cover as falls on or after the first anniversary.
(6)For the purposes of this Part—
(a)so much of the premium as is attributable to such of the period of cover as falls on or after the first anniversary is to be taken to be received on the change date, and
(b)so much as is so attributable is to be taken to be a separate premium.
(7)In determining whether the condition in subsection (3)(a) or (5)(a) is met, regulations under section 68(3) or (7) apply as they would apart from this section.
(8)But where subsection (4) or (6) applies—
(a)that subsection has effect despite anything in section 68 or regulations under that section, and
(b)any regulations under section 68 have effect as if the entry made in the accounts of the insurer showing the premium as due to the insurer had been made as at the change date.
(9)A premium treated by subsection (6) as received on the change date is not to be taken to fall within any exception, from an increase announced by the announcement, for premiums in respect of risks for which the period of cover begins before the change date.
(10)Any attribution under this section is to be made on such basis as is just and reasonable.
(11)In this section—
“increase”, in relation to the rate of tax, includes the imposition of a charge to tax by adding to the descriptions of contract which are taxable insurance contracts;
“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.]
Textual Amendments
F1Ss. 66A-66C inserted (with effect in accordance with s. 18(4) of the amending Act) by Finance Act 2017 (c. 10), s. 18(2)