Insurance Premium Tax Increase – 1st October 2016

Posted on: 20th September, 2016

Following the Chancellor’s March (2016) budget, the rate of Insurance Premium Tax (IPT) on the standard rate will increase by a further 0.5% to 10%.

This applies to all commercial insurance premiums and the increase takes effect from 1st October 2016.

This will include all policies incepted or renewed on or after the 1st October 2016.

Although the increase is disappointing it is worth noting that the UK still has one of the lowest rates in the EU area with some territories having IPT rates as high as 20%.

If you have any queries regarding the change and how it will affect you please contact your local authority representative.