(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.