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Changes to your Insurance Premium Tax

1st May 2018

In the July 2015 budget the government announced an increase in the rate of Insurance Premium Tax (IPT) starting 1st November 2015. The previous rate stood at 6%, however it has now increased to 9.5%.

To make the transition easier for you, we’ve put together this calculator. Just put in what you used to pay in insurance premiums on the left, hit calculate, and what you’ll have to pay now will display on the right.



The following is a basic overview of changes to the Tax applicable, with Insurers being able to implement their own process of introducing the change.

Policies with a New Business or Renewal cover date on or after 1st November 2015

  • The new IPT rate of 9.5% will be applied regardless of when a quote was provided or any rate guarantees that may apply.
  • The new IPT rate of 9.5% will be applied for any mid-term adjustment which results in payment of an additional premium.
  • The new IPT rate of 9.5% will be applied for any mid-term adjustment or cancellation resulting in a refund of premium.Policies with a New Business or Renewal cover date prior to 1st November 2015· The “old” rate of IPT of 6% will be applied.
  • The new IPT rate of 9.5% will be applied to any mid-term adjustment with a cover date on or after 1st November 2015 which results in payment of an additional premium.
  • The “old” IPT rate of 6% will be applied to any mid-term adjustment with a cover date prior to 1st November 2015 which results in payment of an additional premium.
  • The “old” IPT rate of 6% will be applied to any mid-term adjustment or cancellation resulting in a refund of premium regardless of the mid-term adjustment cover date.

As always, our staff are on hand to discuss any queries or concerns you may have regarding the change to IPT and how it may affect you at your next renewal (or any changes in the meantime), so please feel free to get in touch with your usual point of contact.

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