Increased insurance premium tax from June 2017
In the 2016 November Autumn Statement the Chancellor confirmed an increase of 2 per cent to the standard rate of insurance premium tax (IPT). With effect from 1 June 2017, all new and renewal premiums will be subject to the increased tax of 12 per cent.
When do the changes apply?
- If you take out a new policy, or your existing policy renews on or after 1 June 2017, it will be subject to the higher rate tax of 12 per cent.
- If you make a change to your existing policy after 1 June 2017 which results in an additional premium the higher rate of 12 per cent may be applied to that additional premium.
The higher rate of IPT that currently applies to travel insurance, mechanical/electrical appliances and some vehicle insurance will all remain unchanged at 20 per cent.
If you would like further information on any of the above, please do not hesitate to contact your usual Lucas Fettes contact.
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