Insurance Premium Tax: reinsurance of surety business

News item about the VAT and Duties Tribunal's decision that contracts reinsuring surety bonds are not subject to Insurance Premium Tax (IPT), published on 24 May, 2005.

The VAT and Duties Tribunal decided on 6 May, 2005 that contracts reinsuring surety bonds are not subject to Insurance Premium Tax (IPT). This was in a test case taken by Lloyd's syndicate 33 and a number of other insurers following a Customs ruling in April 2003. Customs now have to decide whether to appeal against this decision to the high court. Market bulletin Y3561 (37kb, pdf) gives more details, or click here to see the full text of the Tribunal's decision (233kb, pdf) .