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IPT Increase June 2017

The Government has yet again announced that this year we will see another increase in the standard rate of Insurance Premium Tax (IPT). The new rate of IPT will apply from 1st June 2017 and is going up by a whopping 2% bringing the new rate all the way up to 12% in total.

This doesn’t come as a surprise, considering that the government has increased IPT three times in two years. The standard rate increased from 6% in 2015, and now hitting 12% means that it has doubled in the last two years.

This increase ranks us at 6th highest IPT rate in Europe behind the likes of Greece, Germany and the Netherlands who all have standard IPT above 20% (hopefully we will not be up there with them anytime soon!) This increase marks the sixth time that the rate has gone up since its introduction in 1994.

Those likely to be affected are insurers who provide non – exempt insurance cover for UK risks and the broker and agents who act for them.

If you require any help or information on how you may be affected please do not hesitate to get in touch.

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