IPT05100 - Calculating the value of the premium: importance of premium
One of the fundamental features of insurance is that all those wishing to be insured must contribute to the 바카라 사이트˜common fund바카라 사이트™ a fair and equitable premium.
The concept of 바카라 사이트˜premium바카라 사이트™ is important in IPT because it forms the basis of the tax. Section 49 of the Finance Act 1994 states:
Tax shall be charged on the receipt of a premium바카라 사이트¦
Section 50(2) describes the chargeable amount as:
바카라 사이트¦ such amount as, with the addition of the tax chargeable, is equal to the amount of the premium.
The purpose of this section is to enable you to determine what the amount of the premium is.