United Kingdom

Insurance Premium Tax (IPT) 

IPT is gaining more prominence in many jurisdictions as fiscal authorities look to increase revenue through existing tax channels. How confident are you that your organisation's IPT has been correctly calculated and paid to the relevant fiscal authority? Errors or omissions could not only lead to retrospective tax liabilities, but also financial penalties, as well as reputational damage.
 

What's on your Mind?

 

  • Ensuring the organisation is IPT compliant.
  • Assisting corporate insureds with their IPT obligations, where risks span more than one country.
  • Mitigating IPT costs.

 

Bringing you Peace of Mind

 

  • Multinational insurance risks can give rise to Insurance Premium Tax (IPT) and other parafiscal taxes. Rules on liability differ from country to country, ranging from location of risk to where an insurance company is established. As a result, this can be a complex area to manage, with significant penalties and interest for compliance failures in addition to potential reputational damage and undeclared tax.
  • We enable UK corporates, multinational organisations, brokers and insurance companies to mitigate the cost and risk involved in national and multinational insurance policies carrying significant, irrecoverable IPT.
  • Our team provides a suite of services to navigate the maze of IPT compliance and related issues.  We can help you at each key stage, from planning and benchmarking to process control and negotiation. We have extensive UK, European and global IPT networks, and we connect with our colleagues around the world to enable compliance and develop innovative cross-border solutions.

What's in it for you?

 

  • Reducing IPT costs.
  • Receive greater understanding of IPT and the issues they face - providing comfort that you approaching the subject in the right way.
  • Receiving restructuring advice - which can help mitigate IPT payable.

 

Why KPMG?

 

  • Unique insight: In the UK, we are the only Big Four firm that has two ex-HM Customs IPT officers - so you receive specialist UK skills.
  • The only firm to have a fully dedicated UK IPT group.
  • The only firm to have cross-border experience of advising on IPT compliance issues and dealing with fiscal authorities to satisfactorily resolve these using our IPT network.

 

Case Study

 

  • A large multi-national corporate takes out a global policy with premiums as high as US$20 million. If IPT has not been correctly accounted for, the risks to the client could be significant.  For instance, across Europe the average IPT rate is 10 percent and the retrospective assessable period is 5.5 years.  Using the above premium and average rates and retrospection, this could result in an IPT exposure of US$11m.
 

Contact

Adrian SmithAdrian Smith

Associate Partner

KPMG in the UK

 

020 7311 2427

Email Adrian

IPT News

 KPMG's first international Insurance Premium Tax survey

 

The intention of this survey is to gauge market interest in pursuing two main issues that have been widely discussed in relation to IPT in the EU. These issues are fiscal representation for European Union insurance companies writing Freedom of Services business cross border into another Member State and double taxation based on inequity of treatment of ‘Location of Risk’ rules by Member States.

 

Whilst the points being surveyed relate to EU IPT, they equally apply to international insurance companies, brokers and multi-national corporate insureds who have an interest in insurance cover associated with the EU. 

 

The intention of undertaking the survey is to gather support and understanding from insurance companies; brokers and their customers of the unique administration burden and cost associated with premium taxes which are not found in any other business sector.