Insurance Premium Tax - increase in rate

The UK Government announced on 16 March 2016 that they’ll be increasing the standard rate of Insurance Premium Tax (IPT). From the 1 October 2016, IPT will be increased from 9.5% to 10% for all new business, renewals and additional premiums for mid-term adjustments (MTAs). 

Main Features:
• the new 10% rate of IPT will be applied to new business and renewals with an effective date on or after 1 October 2016
• any additional premiums from MTAs on policies effective on or after 1 October 2016 will also be subject to 10% IPT
• any refunds must not exceed the amount of IPT originally paid to HMRC.