News

10/10/2015

IPT Changes – 1st November 2015

UK Insurance Premium Tax (IPT) Rate Change 1st November 2015

With effect from 1st November 2015 the standard rate of UK IPT will increase from 6% to 9.5%. 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.

Rules to be applied

  • Any policy with a start date prior to the 1st November and paid in full will be at 6%.*
  • Additional premium or policy changes prior to the 1st November 2015 will also be at 6%.
  • Additional premium or policy changes after 1st November and before the 29th February will be at 6% as long as the original policy was in place prior to the 1st November 2015.
  • 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 November where the start date is after the 1st November will be at 6%.*

*providing the documents are with us before 31st December.