With effect from the 1st October 2016, Insurance Premium Tax (IPT) will rise again to 10%, doubling the rate of tax within 6 years.
When announcing the increase, former Chancellor George Osbourne claimed:
“I am going to increase the standard rate of Insurance Premium Tax by just half a percentage point – and commit all the extra money we raise to flood defence spending.
“That’s a £700 million boost to our resilience and flood defences.”
If you’re concerned about how the rate change will affect you, our local offices can guide you through the implications specific to your policies.