A serviceman who has lived in the UK for over a year takes out a personal accident insurance policy in the UK, before he is posted abroad. Because he is 'habitually resident' in the UK, the insurance premium is subject to UK Insurance Premium Tax.
He remains outside the UK for over a year, during which period he renews his policy. Because he is no longer 'habitually resident' in the UK, the policy is not subject to UK Insurance Premium Tax on renewal, and may be subject to local premium tax in the country in which he is living.
