Insurance Premium Tax

Insurance Premium Tax

In the 2016 Budget, the Chancellor of the Exchequer delivered his Budget to Parliament.

Within this was a further increase to the rate of Insurance Premium Tax (IPT) paid on premiums of 0.5% bringing the new rate to 10%.  This rate previously incurred an increase within the 2015 Budget from 6% to 9.5%.

The new rate of 10% comes into effect on 1st October 2016 and impacts all insurance premiums which are taxed at the standard rate of IPT, specifically Buildings Insurance and Property Owners Liability Insurance.  This measure will help the Government fund Flood Defence and Resilience systems.

lpm renewed the current year Policies on 1st September 2016 and the above increase will not impact these premiums that have been communicated to you.  The increase will come into effect at next year’s renewal or for any mid-term adjustments instructed during the year.

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Registered Name: Life Property Management Ltd. Registered in Scotland SC253869. VAT Reg No 827 5010 46. Property Factor Reg No PF000203. Registered Office: 11 Somerset Place, Glasgow G3 7JT.