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SCHEDULES

[F1SCHEDULE 6AU.K. Premiums liable to tax at the higher rate

Textual Amendments

F1Sch. 6A inserted (19.3.1997 with effect as mentioned in s. 24 of the amending Act) by 1997 c. 16, s. 22(3), Sch. 4

Part IIU.K.Descriptions of premium

Insurance relating to domestic appliances etc.U.K.

3(1)[F2Subject to paragraph 5, a premium] under a taxable insurance contract relating to relevant goods falls within this paragraph if—U.K.

(a)the contract is arranged through a person falling within sub-paragraph (2) below, or

(b)the insurer under the contract is a person falling within that sub-paragraph,

unless the insurance is provided to the insured free of charge.

(2)A person falls within this sub-paragraph if—

(a)he is a supplier of relevant goods;

(b)he is connected with a supplier of relevant goods; or

(c)he pays—

(i)the whole or any part of the premium received under the taxable insurance contract, or

(ii)a fee connected with the arranging of that contract,

to a supplier of relevant goods or to a person who is connected with a supplier of relevant goods.

(3)Where a taxable insurance contract relating to relevant goods is arranged through a person who is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom that person is connected.

(4)Where the insurer under a taxable insurance contract relating to relevant goods is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom the insurer is connected.

(5)For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made—

(a)in respect of the taxable insurance contract, or

(b)at or about the time when the taxable insurance contract is made and in connection with that contract, in respect of any insurance-related service,

by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person.

(6)In this paragraph—

(7)In sub-paragraph (6) above—

Textual Amendments

F2Words in Sch. 6A para. 3(1) substituted (1.4.2011) (with effect in accordance with art. 1(2) of the amending S.I.) by The Insurance Premium Tax (Discounted Insurance Premiums: Higher Rate) Order 2011 (S.I. 2011/661), arts. 1(1), 3