IPT Changes - 1st June 2017

Date: Thu 27th April 2017   |   Author: Natalie Ridgwell | Google+

UK Insurance Premium Tax (IPT) Rate Change - 1st June 2017

With effect from 1st June 2017 the standard rate of UK IPT will increase from 10% to 12%. The higher rate of IPT will remain at 20%.

How does this affect AutoProtect?

The following provides guidance on the arrangements leading up to and post the inception date:

  • Any policy with a start date prior to the 1st June and paid in full will be at 10%.
     
  • If a policy is paid in installments* but has a start date prior to the 1st June 2017 this will be at 10%.
     
  • Additional premium or policy changes after 1st June 2017 and before the 30th September 2017  will be at 10% as long as the original policy was in place prior to the 1st June 2017.
     
  • Any refunds will be processed using the rate of IPT applied at the time of the original transaction.  
     
  • Any policy written/sold prior to the 1st June 2017 where the start date is after the 1st October 2017 will be at 12%.
*If a policy is being paid in installments (premium funding) and started before the 1st June 2017 and where the payments continue past the 1st June 2018 those installment payments will not be affected by the rate change.