If an insurance contract covers taxable and exempt risks, or risks which are subject to tax at the standard or higher rates of tax1 the premium must be apportioned between them on a basis that is just and reasonable2. HMRC has issued some guidance on apportionment formulae which it will normally consider to be acceptable but this does not preclude the insurer from using another method if he chooses provided it gives a just and reasonable result3.
HMRC expects that the method of apportionment has some relationship
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:38