Insurance Premium Tax

Mark Chesham has specialised in advising businesses in the financial services and insurance sectors for nearly 25 years. He started with HM Customs and Excise, working in a specialist insurance team, before spending 15 years in two of the 'Big 4' accounting firms. He set up his own consultancy practice in 2005 and is now Director of Indirect Tax Services at Moore Stephens. He is a member of the Chartered Insurance Institute and the VAT Practitioners Group.

INTRODUCTION
1.1. Sources of information

WHAT IS INSURANCE PREMIUM TAX
2.1. Definition
2.2. Is IPT legal?
2.3. Insurance contracts and insurers
2.4. Taxable contracts
2.5. What is a premium?
2.6. Coinsurance, insurance pools and fronting
2.7. Warranties and guarantees
2.8. Discretionary trusts
2.9. Cost plus schemes
2.10. Self insurance
2.11. Voluntary excesses and deductibles

HIGHER RATE IPT
3.1. Introduction
3.2. Motor cars and motor cycles
3.3. Domestic Appliances
3.4. Travel insurance
3.5. Higher rate insurance and free and discounted insurance
TAXABLE INTERMEDIARIES
4.1. Liability to register and account for IPT
4.2. Criteria for a person having to register
4.3. Taxable intermediary provisions
4.4. Higher rate contracts
4.5. Registration limits
LOCATION OF RISK
5.1. Introduction
5.2. Risk location rules
5.3. Habitual residence
5.4. Business establishment
5.5. Unregistered vehicles
5.6. Buildings
5.7. Embassies
5.8. Travel Insurance
5.9. Apportioning multi jurisdictional risks
EXEMPTIONS
6.1. Introduction
6.2. De minimis
6.3. Exemptions
6.4. Non-UK risks
6.5. Reinsurance
6.6. Long-term insurance contracts
6.7. Commercial ships
6.8. Contracts relating to the Channel Tunnel
6.9. Lifeboats and Lifeboat equipment
6.10. Commercial aircraft
6.11. International railway rolling stock
6.12. Goods in foreign or international transit
6.13. Export finance related insurance
6.14. Motability contracts
6.15. Spacecraft
REGISTRATION, DE-REGISTRATION AND TOGCS
7.1. Registration – Introduction
7.2. Deregistration
7.3. Transfer of a going concern
ACCOUNTING FOR IPT
8.1. Introduction
8.2. IPT Accounting Schemes
8.3. Bad debt relief
8.4. Adjusting for errors on IPT returns
8.5. Changes in IPT rates
8.6. Anti-forestalling provisions
8.7. Lloyd's IPT procedures
8.8. Record keeping requirements
8.9. Recovering IPT paid in error
PENALTIES
9.1. Introduction
9.2. Penalty for failure to notify
9.3. Late payment of tax or rendering of returns
9.4. Failure to notify a cessation of trade
9.5. Failure to produce records
9.6. Failure to appoint or nominate a tax representative
9.7. Breach a controlled goods agreement or Walking Possession Agreement in Northern Ireland
9.8. Liability of insured
9.9. Underdeclarations
9.10. Evasion of IPT
9.11. Interest
9.12. HMRC's stated approach to late rendering and payment penalties
9.13. Security
9.14. Reviews and appeals
APPENDIX 1: HMRC PENALTIES FOR FAILURE TO NOTIFY (FACTSHEET CC/FS11)
APPENDIX 2: HMRC PENALTIES FOR INACCURACIES IN RETURNS (FACTSHEET CC/FS7A)
APPENDIX 3: ""CONNECTED"" PERSONS
APPENDIX 4: FORMS
APPENDIX 5: EUROPEAN INSURANCE PREMIUM TAX (IPT) COMPARISON TABLE
APPENDIX 6: IPT ERROR FLOWCHART