From today, 1st June 2017, Insurance Premium Tax (IPT) will be increased from 10% to 12%. Please note that this will not affect the higher rate of IPT (20%). Your policy will be affected in the following way:
· New policies or renewals will be charged at 12% IPT. This includes any additional premiums.
· Policies incepted or renewed from before this date will continue to be charged at 10% for additional premiums.
· In one year’s time, 1st June 2018, all policies will be charged at 12% regardless of inception. This is known as the back stop date.
· Return premiums generated by mid-term adjustments will typically use the rate of IPT at the inception or renewal of that policy.
If you have any questions relating to the above, please contact us on 01476 434050 or email email@example.com.