2011 No. 661
The Insurance Premium Tax (Discounted Insurance Premiums: Higher Rate) Order 2011
Approved by the House of Commons
Made
Laid before the House of Commons
Coming into force
The Treasury make the following Order in exercise of the powers conferred by section 51A(3) of the Finance Act 19941:
Citation, commencement and effect1
1
This Order may be cited as the Insurance Premium Tax (Discounted Insurance Premiums: Higher Rate) Order 2011 and shall come into force on 1st April 2011.
2
This Order has effect in relation to a premium which falls to be regarded, for the purposes of Part 3 of the Finance Act 1994, as received under a taxable insurance contract by an insurer on or after 1st April 2011.
Amendment of Schedule 6A to the Finance Act 19942
Schedule 6A (premiums liable to tax at the higher rate) to the Finance Act 19942 is amended in accordance with this Order.
Amendment of paragraphs 2 and 33
In paragraphs 2(1) and 3(1), for “A premium” substitute “Subject to paragraph 5, a premium”.
Insertion of paragraph 54
After paragraph 4 insert—
Insurance relating to motor cars, motor cycles, domestic appliances, etc provided at a discount5
1
This paragraph applies where (apart from this paragraph) a premium would fall within paragraph 2 or 3 but the insurance is provided to the insured at less than its full cost.
2
For the purposes of this paragraph the cases where the insurance is provided to the insured at less than its full cost are those cases where the amount charged in respect of the taxable insurance contract by any person falling within sub-paragraph (2) of paragraph 2 or 3 to any person who is or becomes the insured under the contract is less than the premium.
3
Only so much of the premium as does not exceed the amount charged falls within paragraph 2 or 3.
(This note is not part of the Order)