As you might be aware, the Standard UK Insurance Premium Tax (IPT) Rate rose from 6% to 9.5% on 1st November 2015 in light of the Summer Budget announced by the Government in July.

This increase relates to all new business, renewals and mid-term additional premiums for mid-term adjustments.

New Business & Renewals:

All new business and renewals with an inception/renewal date on or after 1^st November 2015 will be charged at 9.5%.

New business and renewals with an inception date prior to the 1^st November 2015 will be charged at 6%.

Mid-Term Adjustments (MTAs):

For any MTA which results in a reduction in premium, the refund amount will reflect the original rate of IPT.  This means:

• Effective date of MTA before 1^st November 2015: 6%
• Effective date of MTA on or after 1^st November 2015: 6%

For any MTA which results in an additional premium, the amount will reflect the following rates of IPT:

• Effective date of MTA before 1^st November 2015: 6%
• Effective date of MTA on or after 1^st November 2015: 9.5%

The IPT charges outlined will be based on the effective date of a transaction.

Please do not hesitate to contact our team if you would like more information about these changes.