What is Insurance Premium Tax (IPT):
IPT is a tax on general (both personal and commercial) insurance premiums and is the insurance equivalent of VAT.
There are currently 2 rates of IPT, a standard rate of 6% for general insurance and a higher rate of 20% for specific insurances such as travel insurance, mechanical / electrical appliances insurance and some vehicle insurances.
What has changed:
In this summer’s budget, the chancellor announced that from the 1st November 2015, the rate at which Insurance Premium Tax (IPT) has charged and will increase from 6% to 9.5%.
This will affect all households and businesses in the United Kingdom, who are not currently exempt from IPT (Channel Island and the Isle of Man).
What does this mean for you, your household and your business:
If you are looking to start a new policy on or after the 1st November 2015 or are invited to renew your existing policy on or after this date, you will see the new increased IPT rate of 9.5% included in your premium.
If you're an existing GM Insurance customer, with a policy start date before 1st November 2015 and you need to make change to your policy mid term, you will continue to have the 6% rate applied until 1st March 2016. After this date, the rate will be 9.5%.
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GM Insurance Brokers Ltd
5 Mulberry Court, Lustleigh Close, Matford Business Park, Exeter. EX2 8PW