Insurance Premium Tax Increase from 6% to 9.5%
The government announced an increase to Insurance Premium Tax (IPT) earlier this year.
This change comes into effect from 1 November 2015 and will affect what you have to pay for your insurance.
Changes effective prior to 1 November 2015
For new business, renewals and mid-term changes, IPT will remain at the standard rate of 6%.
For changes effective on or after 1 November 2015
For new business and renewals the new standard rate of 9.5% will apply.
For mid-term changes where the policy renewed or was incepted on or after 1 November 2015, the new standard rate of 9.5% will apply.
For mid-term changes where the policy renewed or was incepted before 1 November 2015, insurers will charge either 6%, 9.5% or a combination of both. This transitional period will last until the end of February 2016.
For changes effective on or after 1 March 2016
IPT on all premiums should be charged at the new standard rate of 9.5%, irrespective of the inception or renewal date of the policy.