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19. Insurance premium tax (standard rate)

Volume 598: debated on Tuesday 14 July 2015

Resolved,

That—

(1) In section 51(2)(b) of the Finance Act 1994 (standard rate of insurance premium tax), for “6 per cent” substitute “9.5 per cent”.

(2) The amendment made by paragraph (1) has effect in relation to a premium falling to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1 November 2015.

(3) The amendment made by paragraph (1) does not have effect in relation to a premium which—

(a) is in respect of a contract made before 1 November 2015, and

(b) falls to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under the contract by the insurer before 1 March 2016 by virtue of regulations under section 68 of that Act (special accounting schemes).

(4) Paragraph (3) does not apply in relation to a premium which—

(a) is an additional premium under a contract,

(b) falls to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under the contract by the insurer on or after 1 November 2015 by virtue of regulations tinder section 68 of that Act, and

(c) is in respect of a risk which was not covered by the contract before that date.

(5) In the application of sections 67A to 67C of the Finance Act 1994 (announced increase in rate) in relation to the increase made by this Resolution—

(a) the announcement for the purposes of sections 67A(1) and 67B(1) is to be taken to have been made on 8 July 2015,

(b) the date of the change is 1 November 2015, and

(c) the concessionary date is 1 March 2016.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.