On 3 June 2019, HMRC published a “call for evidence” on The Operation of Insurance Premium Tax (IPT). The stated purpose of the call for evidence is:
- to modernise the administration and collection of IPT; and
- to understand any emerging insurance industry practices that might lead to unfair IPT outcomes
As the call for evidence is limited to the operation of IPT, it does not consider IPT rates or exemptions.
The specific questions posed include:
- whether, in limited circumstances, IPT should be collected from brokers
- whether existing, limited, powers to collect unpaid IPT from the insured should be bolstered
- whether the mismatch between the IPT treatment of commission and of administration fees distorts the market
- whether a public register (of IPT-registered insurers) would be helpful
- whether unregistered insurers pose an issue to the industry
- whether IPT returns should also include details as to IPT-exempt premiums
The closing date for comments is 17 July 2019.