Part II Insurance Premium Tax

Taxable intermediaries and their fees

27 Supplementary provisions.

1

The M1Finance Act 1994 shall be amended in accordance with the following provisions of this section.

2

In section 53A (information required to keep register up to date) in subsection (1)(b), after the words “register kept under section 53” there shall be inserted “ or 53AA ”.

3

In section 55 (credit)—

a

after “insurer”, wherever occurring other than in subsection (2), there shall be inserted “ or taxable intermediary ”;

b

in subsection (1), after “premium” there shall be inserted “ or taxable intermediary’s fee (as the case may be) ”;

c

in subsection (3)(f), after “registrable” there shall be inserted “ (whether under section 53 or section 53AA) ”;

d

in subsection (5), after “insurer’s” there shall be inserted “ or taxable intermediary’s ”; and

e

in subsection (8)(a), after “premium” there shall be inserted “ or taxable intermediary’s fee ”.

4

In section 57 (tax representatives)—

a

after “insurer”, wherever occurring, there shall be inserted “ or taxable intermediary ”;

b

after “insurer’s”, wherever occurring, there shall be inserted “ or taxable intermediary’s ”; and

c

in subsection (1)(a), after “registered under section 53” there shall be inserted “ or, as the case may be, section 53AA ”.

5

In section 58 (rights and duties of tax representatives)—

a

after “insurer”, wherever occurring, there shall be inserted “ or taxable intermediary ”; and

b

after “insurer’s”, wherever occurring, there shall be inserted “ or taxable intermediary’s ”.

6

In section 59 (review of Commissioners’ decisions) in subsection (1) (which specifies the kinds of decision to which the section applies) after paragraph (b) there shall be inserted—

bb

whether a payment falls to be treated under section 52A(2) above as a premium received under a taxable insurance contract by an insurer and chargeable to tax at the higher rate;

7

In section 62 (partnership, bankruptcy, transfer of business etc) in subsections (1) and (5), after “insurer”, wherever occurring, there shall be inserted “ or taxable intermediary ”.

8

In section 63(1) (which details the functions of representative members of groups of companies)—

a

after paragraph (a) there shall be inserted—

aa

any business carried on by a member of the group who is a taxable intermediary shall be treated as carried on by the representative member,

b

after paragraph (b) there shall be inserted—

bb

the representative member shall be taken to be the taxable intermediary in relation to any taxable intermediary’s fees as regards which a member of the group is the actual taxable intermediary,

9

In section 73 (interpretation) in subsection (1) there shall be inserted at the appropriate places—

a

“taxable intermediary” shall be construed in accordance with section 52A above;

b

“taxable intermediary’s fees” has the meaning given by section 53AA(9) above.

10

At the beginning of subsection (3) of that section (meaning of “registrable person”) there shall be inserted “ Subject to subsection (3A) below, ” and after that subsection there shall be inserted—

3A

References in sections 53A and 54 above and paragraphs 1, 9 and 12 of Schedule 7 to this Act to a registrable person include a reference to a person who—

a

is registered under section 53AA above; or

b

is liable to be registered under that section.

11

In Schedule 7, in paragraph 14 (penalty for failing to register under section 53)—

a

in sub-paragraph (1), after “section 53(2)” there shall be inserted “ or 53AA(3) ”; and

b

in sub-paragraph (2)(a), after “section 53” there shall be inserted “ or, as the case may be, section 53AA ”.