Following the budget earlier in the year it was announced the standard rate of Insurance Premium Tax (IPT) will increase from the 1st October 2016 to 10%. This is in line with the increase to 9.5% last year and any policy incepting or renewing on or after 1st October 2016 will be subject to the new standard rate of IPT.
This change effects everyone from personal insurance policies through to large corporate businesses. It is the second increase in 12 months and though further increases have been rumoured, nothing has been announced officially.
Not all insurance products will be affected by the rise in IPT, as Life Insurance and Mortgage Protection are unaffected whereas personal travel insurance is already charged at a higher rate of 20%.
If you have any queries regarding the increase in IPT please do not hesitate to contact us.