Background Note
7.Insurers use one of two methods to calculate their IPT liability by reference to the date on which the premiums are received by them. These are:
	the cash receipt method, which uses the date when the insurer, or someone acting on their behalf, physically receives the premium payment; or
	the special accounting scheme or premium written method, which uses the date when the insurer records the premium as being due to them.
8.There are anti-avoidance measures which help to (a) prevent insurers from adding additional or new risks to existing contracts and (b) prevent insurance contracts being paid for or extended in advance of the increases in the rates of IPT announced on 22 June 2010 coming into effect, thereby avoiding the increase in tax.