• At-a-glance
• Administration of Tax
• Personal Taxation
• Employment Taxation
• Business Tax
• Corporation Tax
• Capital Gains
• Savings and Investments
  
• Inheritance Tax
  
• Charities
  
• Trusts
• Anti-avoidance
• Value Added Tax
• Stamp Taxes
• Insurance Premium Tax
• Environmental Taxes
• Excise Duties
• Landline Duty

INSURANCE PREMIUM TAX

Premium Splitting

The Finance Bill will introduce legislation to prevent the avoidance of insurance premium tax by charging fees under separate contracts. This legislation will take effect from 24 March 2010. FA 1994, s 72 will be amended to exclude fees charged in connection with arrangements where:

• the insured is an individual who enters into the insurance contract in a personal capacity;
  
• the insured is required to enter into the relevant contract as a condition of entering into the taxable insurance contract, or would be unlikely to enter into the relevant contract without also entering into the insurance contract;
  
• the terms and price of the relevant contract are negotiable by the insured; and
  
• the amount charged to the insured under the taxable insurance contract is arrived at without a comprehensive assessment of the individual circumstances of the insured which might affect the level of risk.