Insurance Premium Tax (IPT) increasing from 10% to 12%
From the 1st June 2017 the standard rate of Insurance Premium Tax (IPT) was increased from 10% to 12%.
All new policies and renewals that start on or after 1st June 2017 will be charged at the new IPT rate of 12%. Any mid-term adjustments to these policies that generate an additional premium will also be charged at the new IPT rate of 12%.
All mid-term adjustments that generate a return premium will usually be refunded at the IPT charged at the policy start date.