IPT05165 - Calculating the value of the premium: separate contracts: legal background
Section 72 of the Finance Act 1994 (as amended by section 28(1) of the Finance Act 1997) defines the meaning of premium for the purposes of IPT. Sub-section (1A) states that any amount charged to an insured person by anybody in connection with a non-higher rate taxable insurance contract falls within the interpretation of premium and is taxed unless it is charged under a separate contract and is notified to the insured person in writing as an amount so charged. HMRC바카라 사이트™s interpretation was that the separate contract must be in relation to something other than the services provided for under the taxable insurance contract; e.g.
- a charge for credit under the Consumer Credit Act; or
- a charge made by the intermediary to the insured person for its services of arranging the insurance on that person바카라 사이트™s behalf.