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IPT on the rise again

SCALES

The Government announced in November  that it would be increasing the standard rate of Insurance Premium Tax (IPT) from its current 10% to 12% from 1st  June 2017. The higher rate of IPT remains at 20%.

The rules for implementation are –

  1. Any New Business or Renewal policy with an inception date before the 1st June 2017 will have an IPT rate of 10% applied
  2. Any New Business or Renewal policy with an inception date on or after the 1st June 2017 will have an IPT rate of 12% applied
  3. Any Mid term adjustment (MTA with an effective date before the 1st June 2017 will have an IPT rate of 10% applied for additional premiums
  4. Any MTA with an effective date on or after the 1st June 2017 (where the policy band inception date is before the 1st June 2017) and is subject to an additional premium will have an IPT rate of 10% applied
  5. Any MTA with an effective date on or after the 1st June 2017 (where the policy band inception date is after the 1st June 2017) and is subject to an additional premium will have an IPT rate of 12% applied
  6. Any MTA with an effective date on or after the 1st June 2018 (where the inception date is before or after the 1st June 2017) and is subject to an additional premium will have an IPT rate of 12% applied
  7. All MTAs for return premiums must show the IPT rate in effect at the time the premium being refunded was payable.
By | 2017-04-28T15:39:47+00:00 April 28th, 2017|Articles|0 Comments

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