56. Insurance Premium Tax (Standard Rate)

– in the House of Commons at 6:23 pm on 22nd March 2016.

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Votes in this debate

Question put,

That—

(1) In section 51(2)(b) of the Finance Act 1994 (standard rate of insurance premium tax), for “9.5 per cent” substitute “10 per cent”.

(2) The amendment made by paragraph (1) has effect in relation to a premium falling to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1 October 2016.

(3) The amendment made by paragraph (1) does not have effect in relation to a premium which —

(a) is in respect of a contract made before 1 October 2016, and

(b) falls to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under the contract by the insurer before 1 February 2017 by virtue of regulations under section 68 of that Act (special accounting schemes). (3) The amendment made by paragraph (1) does not have effect in relation to a premium which —

(4) Paragraph (3) does not apply in relation to a premium which —

(a) is an additional premium under a contract,

(b) falls to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under the contract by the insurer on or after 1 October 2016 by virtue of regulations under section 68 of that Act, and

(c) is in respect of a risk which was not covered by the contract before that date.

(5) In the application of sections 67A to 67C of the Finance Act 1994 (announced increase in rate) in relation to the increase made by this Resolution—

(a) the announcement for the purposes of sections 67A(1) and 67B(1) is to be taken to have been made on 16 March 2016,

(b) the date of the change is 1 October 2016, and

(c) the concessionary date is 1 February 2017.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

The House divided:

Ayes 307, Noes 62.

Division number 224 56. Insurance Premium Tax (Standard Rate)

Aye: 307 MPs

No: 62 MPs

Ayes: A-Z by last name

Tellers

Nos: A-Z by last name

Tellers

Question accordingly agreed to.