In the Autumn statement last year the Government announced that it would be increasing the standard rate of Insurance Premium Tax (IPT) from it current rate of 10 to 12% with effect from the 1st June 2017. This does not affect the higher rate of IPT which applies to personal travel insurance which remains unchanged.
In line with the increase, any new policy incepting or any policy renewing on or after 1st June 2017 will be subject to the new 12% standard rate of IPT. For those incepting or renewing prior to 1st June 2017 will be charged the existing 10% IPT rate.
The increase will affect everyone, regardless of whether you have a large corporate business insurance policy or a personal insurance policy. We aim to ensure that all our clients are aware and understand this increase and how this may impact on their insurance spend and we will continue to work hard to help secure the best deals as part of our efforts to help assuage the financial impact of the IPT increase for you, wherever possible.
If you have any questions or would like to discuss any aspect of this increase in IPT or the impact this may have on your business then please speak with your usual contact at Aston Scott.