03301 00 87 20
menu
menu
 
Add to Favourites

Increase in Insurance Premium Tax

Insurance Premium Tax (IPT) is increasing to 10% from 1st October 2016

The standard rate of Insurance Premium Tax (IPT) which is levied on most UK insurance policies, including motor trade insurance, will be increasing from 9.5% to 10% from 1st October 2016.  This does not affect the higher rate of IPT which applies to personal travel insurance.

Therefore the new standard IPT rate will apply to any policy incepting or renewing on or after 1st October 2016.   There is a transitional period which runs from 1st October 2016 until 1st February 2017 which affects certain changes made to policies which were incepted before 1st October 2016.  To help explain how IPT is applied we have included some examples below:

  1. The IPT applied to your policy if it starts or renews on or before 30th September 2016 will be 9.5%
  2. The IPT applied to your policy if it starts or renews on or after 1st October 2016 will be 10% regardless of when the policy is actually set up.
  3. If you make an adjustment to an existing policy which results in an additional premium becoming due:
  • If the current policy start date is before 1st October 2016 and the process date is between 1st October 2016 and 1st February 2017 then the IPT will be 9.5%
  • If the current policy start date is before 1st October 2016 and the process date is after 1st February 2017 then the IPT will be 10%
  • If the current policy start date is after 1st October 2016 and the process date is after 1st October 2016 then the IPT will be 10%
  1. If you make an adjustment to an existing policy which results in a return premium becoming due or the policy is cancelled for any reason:
  • IPT is based on the effective date of the current policy year.  Therefore if the start date of the current policy year is earlier than the 1st October 2016 then the IPT will be 9.5%.
  • If the start date of your current policy is on or after the 1st October 2016 then the IPT will be 10%.


Who does the increase affect?
Regardless of whether you have a personal insurance policy, a trade or large corporate business this increase will affect you.

If you have any queries about your personal circumstances please contact us.

Road Runner is a trading name of Aston Scott Ltd. Authorised and regulated by the Financial Conduct Authority (Reg No. 308048). For your protection, telephone calls may be recorded or monitored.

Copyright © Aston Scott Ltd 2015. All rights reserved. Road Runner, 28 Dingwall Road, Croydon, CR0 2NH. Tel: 0330 822 0468

This site uses cookies to improve your browsing experience. You can read more about the way it does this on our Cookies page. By continuing to use our website, you consent to our use of cookies.