A risk is located in the UK if the insurance:
- Relates to a building (and its contents insured under the same policy) in the UK
- Relates to a vehicle of any type which is registered in the UK ('vehicle' includes motor vehicles, ships, yachts and aircraft)
- Is a policy of four months duration or less, which covers a travel or holiday risk and is taken out in the UK
- Is of a type not covered in 1-3 and the policyholder is either:
- An individual habitually residing in the UK when the policy is entered into; or
- A business, and the establishment* to which the policy relates is in the UK.
The definition of a UK risk for premium tax purposes is wider. Taxes and similar charges are imposed on UK risks as defined above and on any insurance of moveable property normally contained in a building in the UK.
For general guidance on identifying the location of a risk, please refer to the risk locator.
*Establishment includes (in this instance Establishment relates to an enterprise rather than a form of authorisation to trade):
- An office managed by the business' own staff or an independent person who has the authority to act for the assured as an agency selling agents
- Representative offices
- Oil and gas wells
- Construction sites