Insurance Premium Tax?

There are two rates, 5% and 17.5% - the higher rate applies to

It applies to insurance sales in three trading sectors where insurance is sold in relation to goods and services which are subject to VAT:

• sales of motor cars, light vans or motor cycles * sales of electrical or mechanical domestic appliances * sales of travel insurance.

It was, but IIRC HMG got into trouble trying to apply 17.5% VAT on insurance that was bundled with the purchase of something else and 5% on stand alone insurance, so they made then the same percentage.

tim

It depends on the type of contract. The standard rate *is* 5%, as you say, but for vehicles and domestic and electrical appliances and travel insurance the rate is 17.5%.

This *might* help you. Good luck!

Yes New Labour call it a premium tax when you are *prudent* enough to want to protect your property. Demanding a cut used to be called a protection racket.

Toom

Now, now, nanny knows best. Go and sit on the naughty step. Gordie and his Darling need your money far more than you do.

But it's not a cut, it's an increase.

Playing with words, huh!

Rob Graham