Just a reminder for all our new and existing clients that from 01 June 2017, the standard rate of Insurance Premium Tax (IPT) will rise by 2% from 10% to 12.0%. This is the second increase to IPT in less than twelve months.
Reason for the increase in IPT
The increase was announced by the Chancellor of the Exchequer, Philip Hammond MP in the 2016 Autumn Statement. Announcing the plan, he said “IPT rates in the UK remained some of the lowest in Europe and that money was needed to pay for the government’s infrastructure plans“
Since IPT was introduced in 1994 at a rate of 2.5%, there have been steady increases by successive Chancellors. Only as far back as 2010, the IPT rate was just 5%.
Who is affected?
The new rate impacts all types of general insurance policies ranging from Motor and Household through to Office, Employers Liability, Public Liability and Professional Indemnity insurance.
Want to know more?
If you need any guidance on how Insurance Premium Tax affects your policies, please contact us and we will be happy to discuss this with you.
Give us a call on 01837 55777 Monday to Friday, 8am to 5pm
Email us: email@example.com