Part II

Insurance Premium Tax

New rates of tax

Rate of tax
21
1
For section 51 of the Finance Act 1994 (rate of tax) there shall be substituted—

Rate of tax
51
1
Tax shall be charged—
a
at the higher rate, in the case of a premium which is liable to tax at that rate; and
b
at the standard rate, in any other case.
2
For the purposes of this Part—
a
the higher rate is 17.5 per cent.; and
b
the standard rate is 4 per cent.
2
In section 73(1) of the Finance Act 1994 (general interpretation) there shall be inserted at the appropriate places—
a
“the higher rate” shall be construed in accordance with section 51 above;
b
“the standard rate” shall be construed in accordance with section 51 above;
.
1994 c. 9.