IPT ANNOUNCEMENT – 1 OCTOBER 2016 RATE CHANGE.
As you may be aware, the 2016 Spring Budget announced that the standard rate of IPT will increase by 0.5% to 10% with effect from 1st October 2016.
As your Insurance Broker, it is very important to us that you understand the changes and how they will affect you.
NEW POLICIES & RENEWALS:
The following approach will apply to all policies subject to the standard rate of IPT:
Inception/Renewal Date BEFORE 1st October 2016: 9.5%
Inception/Renewal Date ON OR AFTER 1st October 2016: 10%
Midterm Adjustments or Cancellations generating an additional or return premium are being treated in different ways by separate underwriters.
Many will just apply the above rates as per New Business and Renewal transactions, however others are adhering to a period of grace, whereby the lower rate of IPT will be applied to Midterm Adjustments effective before 1st February 2017.
We will clearly show the rate of IPT that has been applied to each adjustment on your Invoice, so there are no surprises.
Further guidance can be found on the below web page, or you can give us a call on 01702 209520.