Introduction Details of the Section
2.For IPT purposes, “premium” is defined in section 72 of the Finance Act (FA) 1994. Subsection (3) inserts new subsections (1AA) to (1AE) into section 72.
3.New subsection (1AA) brings fees charged under separate contracts back into the scope of IPT, if the conditions in the new subsections (1AB) to (1AE) are met.
4.New subsection (1AB) sets out condition A, that the insurance is provided to private individuals.
5.New subsection (1AC) sets out condition B, which relates to the connection between the (otherwise separate) contract and the taxable contract of insurance.
6.New subsection (1AD) sets out condition C, which provides that the terms and price of the relevant contract are not negotiable by the insured.
7.New subsection (1AE) sets out condition D, that the amount charged to the individual under the taxable insurance contract is arrived at without a comprehensive assessment having been undertaken of the individual circumstances of that person which might affect the level of risk.
8.Subsection (4) provides that the section may be amended by order.
9.Subsection (5) provides that any order made under subsection (4) would be subject to the affirmative resolution procedure.
10.Subsection (6) makes the provision in subsection (3) effective for payments received on or after 24 March 2010.