5 October 2014
HMRC has issued a draft Order designed to introduce a new exemption with effect from 1 December this year. The exemption is intended to cover insurance related to the operation of a spacecraft, provided the contract covers only accident, fire and natural forces, good in transit, damage to property or general liability to third parties. It will include launch, flight, orbit and re-entry. The launch vehicle is also included.
The exemption will be available for all premiums with a tax point falling on or after 1 December, assuming the Order is approved as drafted. This is part of an initiative by the UK Government to promote growth in the UK space industry.