In Part 1 (descriptions of contract) of Schedule 7A (insurance premium tax: contracts that are not taxable) to the Finance Act 19942, after paragraph 7 insert—

“Contracts relating to spacecraft7A

(1)

A contract falls within this paragraph if it relates only to the operation of a spacecraft and is a contract of general insurance of a relevant class.

(2)

For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to—

(a)

accidents,

(b)

goods in transit,

(c)

fire or natural forces,

(d)

damage to, or loss or malfunction of, property, or

(e)

general liability to third parties,

(and no other risks).

(3)

For the purposes of this paragraph—

(a)

the “operation of a spacecraft” means the launch, flight, orbit or re-entry of a spacecraft, and

(b)

“spacecraft” includes all component parts of its launch vehicle.”.