Crystal Search Results

Results for your tailored search displayed by territory.

Please make sure you view all key information in your search results before accepting a risk in the chosen territory.

Disclaimer: Crystal is provided for information purposes; it does not constitute solicitation of business and is not intended to be a substitute for appropriate professional advice. Information relating to Lloyd’s Brussels Subsidiary may be subject to regulatory approval.

UK * Lloyd's
* Please see Authorisation for details of Lloyd's underwriters licensing status
Please see Authorisation for details of Lloyd's Brussels licensing status

Tax - Overview

Summary of taxes applicable to insurance

Lloyd's
  • Premium tax
  • Fire brigade charge

Lloyd's tax department handles premium taxes centrally and syndicates are responsible for fire brigade charges . For detailed information on taxes applicable to a particular risk please select the appropriate type of insurance using the 'Tax by risk' option(s) under tailored search.

Please register/log-in to see the Market Reform Contract guidance below. This demonstrates what tax information should appear on the slip.
 
Risk location
 

A risk is located in this territory for tax purposes if it relates to:

  • fixed and/or moveable property (excluding goods in transit) situated in the territory (including within 12 nm of the coastline), or
  • motor vehicles, ships, yachts or aircraft registered in the territory, or
  • travel risks of a duration of four months or less taken out in the territory, or
  • any other type of risk (not listed above) where the insured is habitually resident in the territory or, in the case of a corporate insured, its business establishment to which the risk relates is situated in the territory. 

Taxes and global contracts

A global contract may give rise to tax exposures in a number of different jurisdictions. Compliance with tax requirements will normally require the premium to be apportioned between jurisdictions and may result in more than one country's tax being applied to the same premium.  In addition tax liabilities may be triggered by a number of factors other than the location of a risk including,  residence of insured, route of the business into Lloyd's and Lloyd's status in a jurisdiction.

Last updated: 24 Oct 2012

Last updated: 20 Oct 2010

The standard rate of UK IPT increased from 6% to 9.5%, effective 1st November 2015.
Last updated: 09 May 2017

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The standard rate of UK IPT increased from 9.5% to 10%, effective 1st October 2016.
Last updated: 09 May 2017

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The standard rate of UK IPT will increase from 10% to 12% with effect from 1 June 2017.

All new business, renewals and additional premiums incepting on or effective from 1 June 2017 will be subject to the new rate of IPT. Premium or additional premium processed in relation to business incepting or effective prior to 1 June 2017 may be taxed at the 10% rate but only if it is processed (signed by Xchanging) on or before 31 May 2018 (i.e. within a one year period). From 1 June 2018 all new business, renewals and additional premiums will attract the increased rate of IPT irrespective of inception/effective date.

Return premiums should be processed using the tax rate applied to the original premium being adjusted. Further information in relation to specific processing issues can be found in Market Bulletin Y5070.
Last updated: 09 May 2017

Tax - Premium tax

Accident and health

Lloyd's
Rate of premium tax is 12%. Note; exemption applies to permanent health policies of a duration of 5 years or longer and policies relating to ship and aircraft crew of qualifying ships and aircraft (for a definition of a qualifying aircraft or ship please see the relevant tax section for aircraft and ships hull)
Last updated: 06 Jun 2017

Aircraft hull and aircraft liability

Lloyd's
Exempt from premium tax. Note; exemption only applies to hull and liability insurance related to commercial aircraft.

The location of the risk is determined by the country of registration of the aircraft.

Commercial aircraft are defined as an aircraft with a takeoff weight of 8000kgs or over and not designed for recreation or pleasure.  Aircraft used for sightseeing or entertainment purposes by a business for profit qualify for the exemption, subject to their meeting the weight qualification. 

Premium tax at 12% applies in relation to aircraft used for recreation or pleasure, e.g. privately owned light aircraft.

Product liability policies covering a manufacturer’s risk in relation to aircraft hull and/or aircraft parts are not aviation risks for tax purposes and should be treated as 'general liability' risks. In addition, for tax purposes aviation related ground equipment/buildings and vehicles are property and motor risks respectively.
Last updated: 06 Jun 2017

Assistance

Lloyd's
Rate of premium tax is 12%. Note; when provided as part of a Travel policy the 20% rate applies
Last updated: 06 Jun 2017

Bloodstock

Lloyd's

Rate of premium tax is 12%

For tax purposes a bloodstock risk is treated as movable property and the location of risk will be determined by reference to the where the horse is normally stabled.

Last updated: 06 Jun 2017

Credit

Lloyd's
Rate of premium tax is 12%. Note; exemptions apply to export credit.
Last updated: 06 Jun 2017

General liability

Lloyd's
Rate of premium tax is 12%

General liability covers: directors and officers’ liability, employer's liability, product liability, professional indemnity, space liability and any other general liability. Please note this list is not exhaustive.

Exemptions apply to risks associated with the operation of the Channel tunnel system.
Last updated: 06 Jun 2017

Cargo and goods in transit

Lloyd's

Rate of premium tax is 12%. Note; exemption applies to commercial goods in international transit.

The exemption for goods in international transit does not apply to the movement of an individual's private (non commercial) property when that individual is a habitual resident of the UK. Habitual residence in this case means being resident in the UK for the at least six of the previous 12 months.

Last updated: 06 Jun 2017

Legal

Lloyd's
Rate of premium tax is 12%. Note; when provided as part of a Travel policy the 20% rate applies.
Last updated: 06 Jun 2017

Life

Lloyd's
Exempt from premium tax
Last updated: 18 Jul 2008

Miscellaneous financial loss/contingency

Lloyd's
Rate of premium tax is 12%. Note; exemptions apply to insurance of foreign exchange losses and financial facilities associated with exports of goods and/or services. In addition the 20% rate applies to some extended warranty business.

The following risks fall under miscellaneous financial risk category: kidnap and ransom (see below), extended warrantees, contract frustration, political risk (see below), confiscation risk, insufficiency of income, GAP, bad weather, loss of benefits, continuing general expenses, unforeseen trading expenses, loss of market value, loss of rent or revenue and other forms of financial loss. Please note this list is not exhaustive.

HMRC have set out their understanding of the IPT treatment of political risks and kidnap and ransom cover, this is set out in Market Bulletin Y2289 - please see extracts from the market bulletin in additional detail below:

Last updated: 06 Jun 2017

click for more detail More detail

Motor and motor liability

Lloyd's
Rate of premium tax is 12%
Last updated: 06 Jun 2017

Property and fire

Lloyd's
Rate of premium tax is 12%. Note; limited exemptions apply

Exemptions apply to risks associated with:
  • The operation of the Channel tunnel system
  • Foreign embassies including contents (but not individual diplomat's homes/property).
  • Specified international organisations (as defined by orders made under the International Organisation's Act 1968) which may claim exemption form insurance premium tax (IPT), however IPT must still be charged by insurer and then reclaimed by the organisation, eg United Nations and its agencies.
Last updated: 06 Jun 2017

Railway rolling stock

Lloyd's
Rate of premium tax is 12%. Note; exemption applies to insurance associated with foreign or international railway rolling stock used principally for journeys taking place wholly or partly outside of the UK.
Last updated: 06 Jun 2017

Reinsurance

Lloyd's
Exempt from premium tax
Last updated: 21 May 2008

Ships hull and ships liability

Lloyd's
Exempt from premium tax. Note; exemption only applies to insurance associated with commercial vessels otherwise premium tax applies at 12%.

The location of the risk is determined by the country of registration of the vessel.

A commercial ship is defined as:
  • having a gross tonnage of 15 tons or more; and
  • not designed or adapted for use for recreation or pleasure.
Ships used for sightseeing or entertainment purposes by a business for profit, subject to being commercial ships, qualify for the exemption.

Ships includes:
  • boats
  • yachts
  • mobile floating docks
  • cranes
  • barges
  • dredgers
  • offshore installations
  • oil rigs (not fixed to the seabed)

Permanently moored vessels, vessels under construction and shore installations are not covered by the exemption.

For a detailed analysis of how UK IPT may apply to marine risks please refer to the Marine risk guidance list.

Last updated: 06 Jun 2017

Suretyship

Lloyd's
Exempt from premium tax.
Last updated: 06 Jun 2017

Terrorism

Lloyd's
The rate of premium tax is 12%. Note; premium tax is due on "Pool Re" premium
Last updated: 06 Jun 2017

Travel

Lloyd's
Rate of premium tax is 20%. Note; the 12% rate applies to corporate travel cover where the corporate entity is the insured party.
Last updated: 06 Jun 2017

Method of calculation & administration

Lloyd's
It is market practice to treat premium tax as a charge on the insured and an addition to the gross premium.
Method of calculation

Rate of tax X gross premium

How tax should be shown on the slip

Show in risk details section under 'Taxes payable by insured and adminstered by insurers'

Method of payment for Lloyd's business

The tax must be collected by the Lloyd's broker with the premium and paid over to Lloyd's. Settlement of the tax to HM Revenue and Customs is due quarterly. A composite return for all non-motor syndicates is completed by the Lloyd's Taxation Department who also arrange payment.

Method of payment in relation to co-insurance arrangements

In the case of a co-insurance arrangement each co-insurer is legally responsible for handling their share of local taxes due.  The lead underwriter cannot take responsibility for handling local taxes on behalf of the following market.

De minimis rule

If the total premium (including APs and RPs) is £500,000 or less, and only 10% or less of the premium is attributable to taxable risks, the whole of the premium can be treated as exempt.

Last updated: 06 Jun 2017

Tax - Fire brigade charges

Motor and motor liability

Lloyd's
The rate of fire brigade charges is £35 per £1 million of the gross value of vehicle(s) insured. Note; these charges only apply to the fire element of a motor risk where the vehicle is garaged in the inner London Boroughs of the Greater London Area
Last updated: 21 May 2008

Property and fire

Lloyd's
The rate of fire brigade charges is £35 per £1 million of the gross value of property insured. Note; the charge only apply to the fire element of a property risk where the property is located in the inner London Boroughs of the Greater London Area
Last updated: 21 May 2008

Terrorism

Lloyd's
The rate of fire brigade charges is £35 per £1 million of the gross value of property insured. Note; the charge only apply to the fire element of a property risk where the property is located in the inner London Boroughs of the Greater London Area
Last updated: 22 Sep 2011

Method of calculation & administration

Lloyd's
Fire brigade charge is a charge on the insurer and is a deduction from premium
Method payment for Lloyd's business

Lloyd's syndicates are responsible for making returns to the London Fire Brigade and arranging payment of any charges due.

Note; these charges only apply to property risks located in the inner London Boroughs of the Greater London area, i.e.:

  • Camden
  • Greenwich
  • Hackney
  • Hammersmith and Fulham
  • Islington
  • Kensington and Chelsea
  • Lambeth
  • Lewisham
  • Southwark
  • Tower Hamlets
  • Wandsworth
  • Westminster
  • the City of London
.
Last updated: 31 Mar 2017