One of the most controversial and unexpected features of the Budget was an increase to IPT. Considered a necessity by the government but a surprise ‘stealth’ tax by industry insiders, the IPT increase has been met with consternation and confusion.
The rate of IPT will be increased from its current rate of 6% to 9.5% —and will apply to general insurance policies starting or renewing on or after 1st November 2015.
What does this mean for you?
- All quotes produced during October at the 6% IPT rate must be put on risk by the 31st October with a policy start date no later than the 31st December.
- All quotations, illustrations, and applications awaiting a start date, irrelevant of when produced, will expire on the 31st October, and you will not be able to submit these policies with a 6% IPT charge.
- All quotations produced from the 1st November will attract the new rate of IPT.
- To put this into context, a £20pm premium will increase by approx. 60p pm as a result of the IPT increase.
If you have any questions relating to the increase in IPT, please feel free to give us a call on 0344 844 3844, or drop us an email at enquiries@uinsure.co.uk.
