Insurance Premium Tax is set to rise
Following the Government Budget announcement on 8th July 2015, you may or may not be aware of the changes proposed within the Insurance industry. Insurance Premium Tax, or ‘IPT’, is included on most of your insurance policies.
Following the recent Budget, from November 2015, IPT will rise from its current rate of 6% to a new higher rate of 9.5%. It has been reported that this is still well below other members within the EU, Germany given as an example, who currently levy 19%.
What does higher IPT mean for you?
In effect, the same underwriting procedures that are in place now will continue, along with our commitment to ensure that our quotes and policies remain competitive. The difference will apply once the underwriting process is complete and the IPT is added to the total.
For every £100 quoted by an insurer, this currently results in an additional £6.00 on your quote. From November, this will increase to £9.50.
- Pre November 2015 (6%) £ 1,000 + IPT = £ 1,060
- From November 2015 (9.5%) £ 1,000 + IPT = £ 1,095