½Û×ÓÊÓƵ

Contracts covering a risk outside the UK are exempt. The UK is defined for these purposes as Great Britain, Northern Ireland and waters within 12 nautical miles of the coastline. It excludes the Isle of Man and the Channel Islands which are not in the UK (and contracts for risks in these islands are exempt from UK IPT). The rules for determining whether a risk is located in the UK are detailed in FA 1994, Sch 7A. FA 1994, Sch 7A, para 8 specifies that the risk in the UK is to be determined in accordance to regulations made under FSMA 2000, s 424(3). The relevant regulations for contracts entered into before 17 December 2009 were the Financial Services and Markets Act 2000 (Law Applicable to Contracts of Insurance) Regulations 2001 (SI 2001/2635). In respect of contracts entered into on or after 17 December 2009 the regulations broadly follow those set out in the EC Second Non-Life Insurance Directive¹ which is reflected in UK insurance regulations². These rules were reproduced in FA 1994, Sch