SCHEDULES
F1SCHEDULE 7A INSURANCE PREMIUM TAX: CONTRACTS THAT ARE NOT TAXABLE
PART I DESCRIPTIONS OF CONTRACT
Contracts relating to credit
13
1
A contract falls within this paragraph if it relates only to credit granted in relation to goods or services supplied under a relevant contract by a person carrying on business in the United Kingdom.
2
For the purposes of this paragraph a relevant contract is—
a
a contract to make a relevant supply of goods, or a supply of services, or both, to an overseas customer;
b
a contract to supply goods to a person who is to—
i
export those goods; or
ii
incorporate those goods in other goods which he is to export,
where the condition mentioned in sub-paragraph (3) below is satisfied;
c
a contract to supply to a person who is to export goods services consisting of the valuation or testing of, or other work carried out on, those goods where the condition mentioned in sub-paragraph (3) below is satisfied;
d
a contract to supply services to a person in order that he may comply with a legally binding obligation to make a supply of services to an overseas customer.
3
The condition referred to in sub-paragraph (2)(b) and (c) above is that the goods to be exported are to be exported in order that the person exporting them may comply with a legally binding obligation to make a relevant supply of goods to an overseas customer.
4
For the purposes of this paragraph—
a
“export” means export from the United Kingdom and cognate expressions shall be construed accordingly; and
b
any reference to a person who is to export goods shall be taken as including a reference to a person at whose direction the insured is to export them and the reference in sub-paragraph (3) above to the person exporting goods shall be construed accordingly.
5
Where a contract relates to—
a
credit of the description in sub-paragraph (1) above; and
b
loss resulting from the insured or any third party being required to pay the amount of any bond or guarantee against non-performance by the insured of the contract which involves him making the supply,
the contract shall be treated for the purposes of sub-paragraph (1) 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