How Does the June 2017 IPT Increase Impact You?
Insurance Premium Tax (IPT) will increase further to 12% from June 2017. In our latest update, Thomas Carroll highlight the changes and how they impact you as a customer.
Insurance Premium Tax (IPT) was first introduced in the UK in 1994 and is a tax on business and personal insurance premiums. There are currently two bands, with 10% being the most common rate and a higher rate that applies to some insurances, including travel – which are 20%
What is changing?
This latest increase to IPT means the tax on insurance premiums has almost doubled in less than two years:
- November 2015 – IPT rose from 6% to 9.5%
- October 2016 – IPT rose from 9.5% to 10%
- June 2017 – IPT will rise from 10% to 12%
How does this impact you?
The IPT increase will impact any business or individual which is taking out an insurance policy on or after 1st June 2017 and any additional premiums payable on policies which were inserted prior to this date. For adjustments after 1st June 2017, you will pay the increased rate.
If you take out a new policy or renew before that date then the current 10% rate will still apply for the first year of your cover. If you already have an active policy the price will remain the same until your annual renewal on or after 1st June 2017.
For more information call Thomas Carroll on 02920 853788 or contact your account executive.