IPT05960 - Calculating the value of the premium: the de minimis provision: when and how to apply de minimis provision

»Ê¹ÚÌåÓýapp de minimis provision should be applied according to the facts known at the outset of the contract. »Ê¹ÚÌåÓýapp insurer will need to establish that:

  • the contract is a mixed (taxable and exempt) policy;
  • the entire premium paid for the policy is £500,000 or less (except cases shown in IPT05950);
  • the premium, when apportioned, shows a taxable element of 10% or less.

This apportionment must be carried out on a ‘just and reasonable� basis.