IPT Changes - 1st October 2016

Date: Mon 5th September 2016   |   Author: Natalie Ridgwell | Google+

UK Insurance Premium Tax (IPT) Rate Change 1st October 2016

With effect from 1st October 2016 the standard rate of UK IPT will increase from 9.5% to 10%. 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 October 2016 and paid in full will be at 9.5%.
     
  • If a policy is paid in instalments* but has a start date prior to the 1st October 2016 this will be at 9.5%.
     
  • Additional premium or policy changes after 1st October 2016 and before the 31st January 2017  will be at 9.5% as long as the original policy was in place prior to the 1st October 2016.
     
  • 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 October 2016 where the start date is after the 1st October 2016 will be at 10%.
*If a policy is being paid in instalments (premium funding) and started before the 1st October 2016 and where the payments continue past the 31st January 2017 those instalment payments will not be affected by the rate change.