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Contents

Official guidance
Insurance Premium Tax

IPT05000 · Calculating the value of the premium: contents

  • IPT05050 · Calculating the value of the premium: purpose and outline of this section
  • IPT05100 · Calculating the value of the premium: importance of premium
  • IPT05150 · Calculating the value of the premium: definition of premium
  • IPT05160 · Calculating the value of the premium: separate contracts: contents
  • IPT05200 · Calculating the value of the premium: determining ‘any risk’
  • IPT05250 · Calculating the value of the premium: how the value of ‘any risk’ is determined
  • IPT05300 · Calculating the value of the premium: ‘costs of administration’
  • IPT05350 · Calculating the value of the premium: the meaning of ‘commission’
  • IPT05400 · Calculating the value of the premium: the meaning of ‘facility to pay in instalments’
  • IPT05450 · Calculating the value of the premium: premiums are inclusive of tax
  • IPT05500 · Calculating the value of the premium: discounted premiums
  • IPT05550 · Insurance premium tax: Calculating the value of the premium: Intermediaries: Contents
  • IPT05600 · Calculating the value of the premium: premiums received other than in money
  • IPT05650 · Calculating the value of the premium: contracts at less than open market value (OMV)
  • IPT05700 · Calculating the value of the premium: retro rated policies
  • IPT05750 · Calculating the value of the premium: employers' liability insurance
  • IPT05800 · Calculating the value of the premium: types of contract covering exempt and taxable risks: contents
  • IPT05900 · Calculating the value of the premium: the de minimis provision: contents
  1. Calculating the value of the premium: contents
  2. Calculating the value of the premium: how the value of ‘any risk’ is determined

IPT05250 | Calculating the value of the premium: how the value of ‘any risk’ is determined

From HM Revenue & Customs · Insurance Premium Tax

To determine the value of ‘any risk’, the underwriter, using actuarial tables, other statistical information and their professional judgment, rates risks according to:

  • the amount for which the insurer is liable - usually expressed as the sum insured or a limit of liability;

  • the likely claims ratio (the possibility of loss occurring).

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