Insurance Premium Tax Flashcards
What is the significance of Prudential Insurance Company?
This case identified three elements for a taxable insurance contract:
1. A premium paid
2. The insured being indemnified against a loss arising from an uncertain event
3. The insured being the one that suffered the loss as a result of that event i.e the insurable interest
What is the case of Homeserve [2009]?
If insurance is provided in similar circumstances to Homeserve, the commission/fee is included in the amount of the premium and the IPT paid by the insurer.
Conditions in IPT notice
What is the case of Guarantee Protection Insurance Ltd?
It was held that an amount charged to a customer by an intermediary, that is kept by the intermediary, which the insurer knows nothing about, is not chargeable to IPT.
It was not an insurance contract itself and as there was no connection between the insurance contract and the commission, it did not fall in section 72.
