{
  "url": "https://openlegislation.uk/insurance-premium-tax-discounted-insurance-premiums-higher-rate-order-2011/note",
  "json_url": "https://openlegislation.uk/insurance-premium-tax-discounted-insurance-premiums-higher-rate-order-2011/note.json",
  "legislation": "uksi/2011/661",
  "legislation_title": "The Insurance Premium Tax (Discounted Insurance Premiums: Higher Rate) Order 2011",
  "legislation_url": "https://openlegislation.uk/insurance-premium-tax-discounted-insurance-premiums-higher-rate-order-2011",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThis Order amends paragraphs 2 and 3 of, and inserts a new paragraph 5 into, Schedule 6A to the Finance Act 1994. Schedule 6A specifies the insurance premiums which are liable to insurance premium tax at the higher rate (20% of the taxable premium) rather than the standard rate (6% of the taxable premium).\nInsurance premium tax is payable at the higher rate on insurance premiums relating to motor cars, motorcycles and domestic appliances. The new paragraph 5 ensures that, where the insurance is provided to the insured for less than it actually costs to provide it, only the amount of the premium that does not exceed the amount charged by the person mentioned in either paragraph 2(2) or 3(2) is charged at the higher rate of IPT. The rest of the premium is charged at the standard rate of IPT.\nThis Order replicates the effect of ESC 4.5 (IPT: Arrangements for discounted insurance) of Notice 48 “Extra Statutory Concessions” published by Her Majesty’s Customs and Excise in March 2002 which is available at: http://www.hmrc.gov.uk/thelibrary/esc.htm.\nA full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2011/661/note",
    "retrieved_at": "2026-10-29T02:13:52.391227+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}