34. Insurance Premium Tax (Standard Rate)

Part of the debate – in the House of Commons at 6:52 pm on 14th March 2017.

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Question put,

That—

(1) In section 51(2)(b) of the Finance Act 1994 (standard rate of insurance premium tax), for “10 per cent” substitute “12 per cent”.

(2) Subject to paragraph (3), 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 June 2017.

(3) That amendment does not have effect in relation to a premium falling within paragraph (4), unless the premium falls 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 June 2018.

(4) A premium falls within this paragraph if it is in respect of a risk for which the period of cover begins before 1 June 2017.

(5) In the application of sections 66A and 66B of the Finance Act 1994 (anti-forestalling provision) in relation to the increase in insurance premium tax made by this Resolution, the announcement relating to that increase is to be taken to have been made on 8 March 2017 (and “the change date” is to be taken to be 1 June 2017).

(6) This Resolution is to be read with section 66C of the Finance Act 1994 (premiums relating to more than one period of cover).

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 309, Noes 286.

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