IPT ANNOUNCEMENT – 1 JUNE 2017 RATE CHANGE
As you may be aware, the 2017 Spring Budget announced that the standard rate of IPT (Insurance Premium Tax) will increase by 2% to 12% with effect from 1st June 2017.
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 June 2017: 10%
Inception/Renewal Date ON OR AFTER 1st June 2017: 12%
MIDTERM ADJUSTMENTS:
As a general rule, return premiums (credits) to policies incepted before the 1st June will have the former rate of 10% applied to them, and additional premiums (debits) will have the new rate of 12% applied.
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 this government web page, or you can give us a call on 01702 209520.
