Section 101 | IPT: meaning of “premium”

(1)In section 72 of FA 1994 (interpretation: “premium”), after subsection (1A) insert—

(1B)Where—

(a)an amount is charged (to the insured or any other person) in respect of the acquisition of a right (whether of the insured or any other person) to require the insurer to provide, or offer to provide, any of the cover included in a taxable insurance contract, and

(b)any payment in respect of that amount is not regarded as a payment received under that contract by the insurer by virtue of subsection (1A) above,

the payment is to be regarded as a payment received under that contract by the insurer unless it is chargeable to tax at the higher rate by virtue of section 52A above.

(2)The amendment made by subsection (1) has effect in relation to amounts charged on or after 22nd March 2007.