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£ Important Insurance Premium Tax Update
Important changes in relation to the treatment of Insurance Premium Tax (IPT) which apply to the Customers’ goods insurance arrangements of Removals and Storage companies were announced in December 2009.
In the 2009 Pre-budget Report under the heading Insurance Premium Tax: Premium Splitting, HM Revenue & Customs announced that charges made in connection with insurance contracts with Private individuals will now be subject to Insurance Premium Tax (IPT). The measure is designed to eliminate IPT avoidance created by the Homeserve judgment.
The measure is effective on payments made on or after 9th December 2009 and only applies to charges involving private individuals. Charges made for services provided in connection with insurance contracts with businesses and other organisations are not included. Therefore administration fees/charges made to commercial customers are not subject to IPT.
A copy of the 2009 Pre – Budget Report PBRN15 dated 9 December 2009 entitled Insurance Premium Tax: Premium Splitting can be found at the following link:
http://www.hmrc.gov.uk/pbr2009/ins-premium-tax-0360.pdf
We have also received separate confirmation from HM Revenue & Customs that fees connected to the arrangement of insurance with Private individuals are subject to IPT irrespective of whether these are regulated by the FSA or fall under the deregulated route.
It will now be necessary for companies to keep a record of the fees charged to their customers (private individuals only) so that the IPT due can be calculated. Insurers are the only point of collection of this tax so you will need to make arrangements to include details of the amount of IPT that you have collected in your premium adjustment declarations.
For further information please talk to your usual contact at Basil Fry & Co.
Online Marine System
We have now established our own on line marine system in conjunction with our friends at MoveMan. The system, unlike others that are currently available, allows you to provide either Standard Liability protection or if you are FSA regulated, Marine Insurance. Naturally, you will need to continue to obtain Overseas Valuation Forms or Marine Insurance Proposals, if FSA regulated, from your clients. You will not however, need to continue to send these in to our offices but simply retain them for Insurer’s reference in the event of a claim occurring.
You will need a password to access the site and these are going to be provided by us upon application. Simply ring the office on 01372 385985 to obtain your password.
We will issue you with any assistance you require in order to access the site and provide you with answers to any questions that you may have.
Insurance Deregulation