Insurance Premium Tax (IPT) Increases
What is it?
It is the tax the government charges to insurance premiums, similar to VAT.
What is changing?
From 1st November 2015 all insurance premiums will attract the new rate of 9.5%. This is a 3.5% increase.
Do I need to take any action?
Insurance companies are responsible for collecting and paying this tax to the Treasury. So you do not need to worry about this in your tax returns.
If you are considering buying a new insurance policy where the start date is optional it might be worth considering doing this before the 1st November 2015 to take advantage of the lower current IPT rate of 6%.