UK Insurance Premium Tax (IPT) rate change

In the Summer Budget the Chancellor announced that there would be a 3.5% increase in the standard rate of IPT. With effect from 1st November 2015 the standard rate of UK IPT will increase from 6% to 9.5%.

Money - shutterstock

Yutree will apply the new rate of 9.5% to all new and renewal business effective on or after 1st November 2015.

Mid-term adjustments generating a return premium will be processed using the tax rate that was applied to the transaction to which it relates.

Mid-term adjustments on policies incepted prior to 1st November 2015 and generating an additional premium may be processed at the old rate subject to it being normal practice to process that transaction as a mid-term adjustment (rather than new business) and subject to it being processed before 1st March 2016. After this date, the new tax rate of 9.5% will apply.

Our approach is to ensure that there is clarity for your customers in respect of business placed via Yutree. Please make sure that your clients are aware of these changes and that they understand the financial implications of them. You can get more information to assist you with this on the government website GOV.UK – IPT change 2015 If you have any questions, please do not hesitate to get in touch.

Laura High

Director

T: 01638 675992

E: laura.high@yutree.com

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