Insurance Premium Tax
Insurance premium tax (IPT) is charged on all taxable insurance premiums which cover risks located in the UK. FA 1994, s 72 defines ‘premium’, for IPT purposes, as any payment received under a contract of insurance and certain other payments related to it. A new section 72(1B) will be introduced to clarify that the definition of premium includes any payment received by an insurer for a right to require the insurer to provide cover under a taxable contract of insurance.