HMRC launches consultation on the operation of Insurance Premium Tax

HMRC has launched a new consultation on how the administration and collection of Insurance Premium Tax (IPT) can be 'modernised'.

06 Jun 2019

HMRC has launched a new consultation on how the administration and collection of Insurance Premium Tax (IPT) can be 'modernised'.

The consultation also aims to review the extent to which there are emerging practices leading to 'unfair tax outcomes'. HMRC has stressed that the consultation focuses on the operation of IPT, and does not, therefore, consider the current rates of IPT nor the current exemptions to IPT.

HMRC's consultation document states: 'We have been made aware of business practices involving administration and arrangement fees which may be leading to unfair tax outcomes in the insurance industry.

'This involves the artificial manipulation of insurance and broker structures to create different tax outcomes. IPT is chargeable on the gross premiums, whereas fees are not subject to IPT or VAT.'

HMRC proposes extending the scope of IPT to include administration fees, in order to 'align their treatment with commission'.

The consultation document can be viewed here. The closing date for comments is 17 July 2019.

Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2019 Blue Spire Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK