1. These Regulations may be cited as the Insurance Premium Tax (Amendment) Regulations 1997 and shall come into force on 1st May 1997.

2. In these Regulations "the principal Regulations" means the Insurance Premium Tax Regulations 1994(2).

3. Regulation 2(1) (interpretation) of the principal Regulations shall be amended as follows-

(a)after "section 53" in the definition of "accounting period" there shall be inserted "or 53AA";

(b)after "section 53" in the definition of "registered person" there shall be inserted "or 53AA"; and

(c)after the defintion of return there shall be inserted-

""taxable intermediary's fees" means fees which, to the extent of any payment in respect of them, are chargeable to tax by virtue of section 52A of the Finance Act 1994(3) and references in these regulations to "fee" or "fees" shall be construed accordingly;".

4. After regulation 4 (notification of liability to register) of the principal Regulations there shall be inserted-

"Notification of liability to register-taxable intermediaries

4A-(1) A person who is required by section 53AA(3) of the Act to notify the Commissioners of the facts there mentioned shall do so on the form numbered 1 in the Schedule to these Regulations.

(2) Where the notification referred to in this regulation is made by a partnership, it shall include the particulars set out on the form numbered 2 in the Schedule to these Regulations.

(3) The notification referred to in this regulation shall be made within thirty days of the earliest date after 30th April 1997 on which the person either forms or continues to have the intention to charge taxable intermediary's fees in the course of any business of his.".

5. Regulation 5 (changes in particulars) of the principal Regulations shall be amended as follows-

(a)after "regulation 4" in paragraph (1) insert "or 4A" and for the words "of that regulation"there shall be substituted "of regulation 4 or 4A above";

(b)for "or any insurance business carried on by him" in paragraph (4) there shall be substituted", any insurance business carried on by him or any business in the course of which he charges taxable intermediary's fees"; and

(c)after "section 53" in paragraph (5) insert "or 53AA".

6. After regulation 6 (notification of liability to be de-registered) of the principal Regulations there shall be inserted-

"Notification of liability to be de-registered-taxable intermediaries

6A A person who is required by section 53AA(4) of the Act to notify the Commissioners of the facts there mentioned shall, within thirty days of his having ceased to have the intention of charging taxable intermediary's fees, give notice to the Commissioners in writing-

(a)of the date on which he ceased to charge taxable intermediary's fees in the course of any business of his; and

(b)if different, the date on which the last such fee was received.".

7. In regulation 11(1) (Death, bankruptcy or incapacity of registerable persons) of the principal regulations after "of his" there shall be inserted "or any business in the course of which he charged taxable intermediary's fees".

8. In regulation 16(1)(d) (records) of the principal Regulations after "premium" insert "or fee".

9. In Regulation 17 (scope) of the principal Regulations for paragraphs (1) and (2) there shall be substituted-

"17-(1) This Part applies where-

(a)an insurer has paid tax and all or part of the premium on which the tax was charged is repaid; or

(b)a taxable intermediary has paid tax and all or part of the fee on which the tax was charged is repaid.

(2) Where-

(a)an insurer receives a premium in an accounting period and repays that premium or part of it in that accounting period; or

(b)a taxable intermediary receives a fee in an accounting period and repays that fee or part of it in that accounting period,

this Part shall apply as if the tax on the premium or fee (as the case may be) had already been paid by him.".

10. Regulation 18 (claims in returns) of the principal Regulations shall be amended as follows-

(a)in paragraph (1)-

(i)after "insurer" insert "or, as the case may be, taxable intermediary", and

(ii)after "premium" insert "or fee";

(b)in paragraph (2)-

(i)after "insurer" insert "or taxable intermediary", and

(ii)after "premium" insert "or fee";

(c)in paragraph (3) for "premium or part" there shall be substituted "premium or fee, or part of such premium or fee".

11. Regulation 19 (payments in respect of credit) of the principal Regulations shall be amended as follows-

(a)after "insurer" in paragraph (1) insert "or taxable intermediary";

(b)in paragraph (2)-

(i)after "insurer" insert "or taxable intermediary", and

(ii)after "53(5)" insert "or 53AA(6) of the Act";

(c)in paragraph (3)-

(i)after "insurer" insert "or taxable intermediary", and

(ii)after "premium" in sub-paragraph (c) for "premium or part" there shall be substituted"premium or fee, or part of such premium or fee";

(d)after "insurer" in paragraph (4) insert "or taxable intermediary as the case may be,"; and

(e)after "insurer" in paragraph (5) insert "or taxable intermediary".

12. Regulation 29 (notification by tax representatives in certain cases) of the principal Regulations shall be amended as follows-

(a)in paragraph (1)-

(i)after "insurer's" insert "or taxable intermediary's", and

(ii)after "insurer" insert "or taxable intermediary";

(b)in paragraph (2) after "insurer" insert "or taxable intermediary"; and

(c)in paragraph (3)(a) after "insurer" insert "or, as the case may be taxable intermediary,".

13. In regulation 30 (registration of tax representatives) of the principal Regulations after"insurer" in paragraph (1) insert "or taxable intermediary".

14. In regulation 31 (liability of tax representatives to notify) of the principal Regulations after"insurer" wherever occurring insert "or taxable intermediary" and after "insurer's" insert "or taxable intermediary's".

15. For forms 1, 4, 5 and 6 in Schedule 1 to the principal Regulations there shall be substituted respectively the correspondingly numbered forms in the Schedule to these Regulations.

SCHEDULE

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 1 May 1997, amend the Insurance Premium Tax Regulations 1994 ("the principal Regulations") and make provision for certain insurance intermediaries ("taxable intermediaries") to register and account for insurance premium tax.

Regulation 3 amends regulation 2 of the principal Regulations by amending the definitions of "accounting period" and "registered person", so that they include a reference to section 53AA (Registration of taxable intermediaries) of the Finance Act 1994 which was inserted by section 26 of the Finance Act 1997 (c. 16). A definition of "taxable intermediary's fees" has also been inserted.

Regulation 4 inserts a new regulation 4A in the principal Regulations providing for how taxable intermediaries have to notify the Commissioners of their liability to register.

Regulation 5 amends regulation 5 of the principal Regulations so that the requirement to notify changes in particulars also applies to taxable intermediaries.

Regulation 6 introduces a new regulation 6A into the principal Regulations requiring taxable intermediaries to notify the Commissioners in writing within a specified time of their ceasing to charge taxable intermediarys's fees.

Regulation 7 amends regulation 11 of the principal Regulations so that the provisions relating to bankruptcy or incapacity of a registrable person also apply to taxable intermediaries.

Regulation 8 amends regulation 16 of the principal Regulations so that the requirement to keep and preserve certain documents also applies to taxable intermediaries.

Regulation 9 replaces paragraphs (1) and (2) of regulation 17 of the principal Regulations so that fees received by taxable intermediaries are brought within the scope of Part IV of the principal Regulations (Claims in respect of Credit).

Regulation 10 amends regulation 18 of the principal Regulations so that the right to claim tax credits on an IPT return extends to taxable intermediaries.

Regulation 11 amends regulation 19 of the principal Regulations so that the rights and requirements relating to payments in respect of credit extend to taxable intermediaries.

Regulations 12, 13 and 14 amend, respectively, regulations 29, 30 and 31 of the principal Regulations so that the provisions relating to notification, registration and liability also apply to the tax representatives of taxable intermediaries.

Regulation 15 and the Schedule substitute new forms 1, 4, 5 and 6 for the forms presecribed in Schedule 1 to the principal Regulations.