The High Court has ruled that insurance premium tax (IPT) is not chargeable on a contract for administration services (Homeserve GB Ltd v Revenue and Customs Commissioners). The Court clarified that as long as the contract under which the fee is paid is a separate contract from the contract of insurance, the fee will not be subject to IPT.

An Inspector calls

On 1 April 2009, HMRC’s new wider powers of enquiry and inspection came into effect. These wider powers include the power to search business premises and demand documents. Businesses are advised to take practical steps to ensure they are prepared should an HMRC inspector call. 

VAT on transfer of portfolio of reinsurance contracts

A recent Opinion by the ECJ has brought into focus the treatment of certain insurance and reinsurance contracts. The German supreme fiscal court asked the ECJ to clarify whether a transfer of a portfolio of reinsurance contracts from one insurer to another was an exempt transaction for VAT purposes. The transfer of an insurance contract, on the facts, did not satisfy this.   

Personal liability of senior accounting officers for tax reporting

In 2009 rules have come into force setting out new obligations and duties for senior accounting officers and directors of certain sized companies to take reasonable steps to ensure that their company (including group companies) establishes and maintains appropriate tax accounting arrangements.

Taxing times

A perceived hostile tax environment and constantly changing rules have caused a number of major insurance and non-insurance companies to migrate from the UK. This article discusses why these companies are leaving and what the UK Government is doing about it.