PART 9Other taxes and duties

Insurance premium tax

141Insurance premium tax: standard rate

1

In section 51(2)(b) of FA 1994 (standard rate of insurance premium tax), for “9.5 per cent” substitute “10 per cent”.

2

The amendment made by subsection (1) has effect in relation to a premium falling to be regarded for the purposes of Part 3 of FA 1994 as received under a taxable insurance contract by an insurer on or after 1 October 2016.

3

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

a

is in respect of a contract made before 1 October 2016, and

b

falls to be regarded for the purposes of Part 3 of FA 1994 as received under the contract by the insurer before 1 February 2017 by virtue of regulations under section 68 of that Act (special accounting schemes).

4

Subsection (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 FA 1994 as received under the contract by the insurer on or after 1 October 2016 by virtue of regulations under 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 FA 1994 (announced increase in rate) in relation to the increase made by this section—

a

the announcement for the purposes of sections 67A(1) and 67B(1) is to be taken to have been made on 16 March 2016,

b

the date of the change is 1 October 2016, and

c

the concessionary date is 1 February 2017.