The Insurance Premium Tax (Amendment) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 1 May 1997, amend the Insurance Premium Tax Regulations 1994 (“the principal Regulations”) and make provision for certain insurance intermediaries (“taxable intermediaries”) to register and account for insurance premium tax.

Regulation 3 amends regulation 2 of the principal Regulations by amending the definitions of “accounting period” and “registered person”, so that they include a reference to section 53AA (Registration of taxable intermediaries) of the Finance Act 1994 which was inserted by section 26 of the Finance Act 1997 (c. 16). A definition of “taxable intermediary’s fees” has also been inserted.

Regulation 4 inserts a new regulation 4A in the principal Regulations providing for how taxable intermediaries have to notify the Commissioners of their liability to register.

Regulation 5 amends regulation 5 of the principal Regulations so that the requirement to notify changes in particulars also applies to taxable intermediaries.

Regulation 6 introduces a new regulation 6A into the principal Regulations requiring taxable intermediaries to notify the Commissioners in writing within a specified time of their ceasing to charge taxable intermediarys’s fees.

Regulation 7 amends regulation 11 of the principal Regulations so that the provisions relating to bankruptcy or incapacity of a registrable person also apply to taxable intermediaries.

Regulation 8 amends regulation 16 of the principal Regulations so that the requirement to keep and preserve certain documents also applies to taxable intermediaries.

Regulation 9 replaces paragraphs (1) and (2) of regulation 17 of the principal Regulations so that fees received by taxable intermediaries are brought within the scope of Part IV of the principal Regulations (Claims in respect of Credit).

Regulation 10 amends regulation 18 of the principal Regulations so that the right to claim tax credits on an IPT return extends to taxable intermediaries.

Regulation 11 amends regulation 19 of the principal Regulations so that the rights and requirements relating to payments in respect of credit extend to taxable intermediaries.

Regulations 12, 13 and 14 amend, respectively, regulations 29, 30 and 31 of the principal Regulations so that the provisions relating to notification, registration and liability also apply to the tax representatives of taxable intermediaries.

Regulation 15 and the Schedule substitute new forms 1, 4, 5 and 6 for the forms presecribed in Schedule 1 to the principal Regulations.