SCHEDULES
F1SCHEDULE 7A INSURANCE PREMIUM TAX: CONTRACTS THAT ARE NOT TAXABLE
PART I DESCRIPTIONS OF CONTRACT
Contracts relating to exchange losses
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1
A contract falls within this paragraph if—
a
it relates only to loss resulting from a change in the rate at which the price for a supply which is or may be made by the insured may be exchanged for another currency; and
b
the conditions mentioned in sub-paragraph (2) below are satisfied.
2
The conditions referred to in sub-paragraph (1) above are that—
a
the insured is a person carrying on business in the United Kingdom;
b
the contract of insurance concerns a contract to make a relevant supply of goods, or a supply of services, or both, to an overseas customer (whether or not the contract to make the supply is one into which the insured has entered, or one for which he has tendered or intends to tender); and
c
the period of cover for the risk expires no later than the date by which the whole of the price for the supply is to be paid or, where the contract has not been entered into, would be required to be paid.
3
Where the contract relates to—
a
loss of the description in sub-paragraph (1)(a) above; and
b
loss relating from a change in the rate at which the price of goods which the insured imports into the United Kingdom for the purpose of enabling him to make the supply concerned may be exchanged for another currency,
the contract shall be treated for the purposes of sub-paragraphs (1) and (2) above as if it did not relate to loss of the description in paragraph (b) above.
Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5