| Link(s): | Insurance_Premium_Tax-administration_and_unfair_outcomes_-_summary_of_responses.odt (live.com) |
Context
HM Revenue and Customs has published a summary of responses in relation to its consultation about the administrations of and unfair outcomes of Insurance Premium Tax (IPT). In 2019 the government held a call for evidence in which it asked for comment on a range of areas in relation to the administration of Insurance Premium Tax (IPT). The response to that call for evidence was then used to inform the options proposed by the ‘Consultation on Insurance Premium Tax: administration and unfair outcomes’ which ran from November 2020 to February 2021.
Key points to note
The consultation proposed options for amending the operation of IPT to address three main issues:
- Unregistered insurers who fail to fulfil their IPT obligations- which could have seen brokers liable for any unpaid IPT where they used unregistered insurers and IPT being introduced on brokers’ administration fees.
- The use of avoidance structures by some members of the insurance industry.
- Whether the administration of IPT could be improved to reduce the administrative burden on both the industry and HM Revenue and Customs.
There are no legislative policy changes being announced.
Next actions
HMRC will engage with industry to seek to establish public access to the register of insurers registered to pay IPT, alongside a Code of Conduct for brokers to follow in relation to IPT.