The government has recently announced a change to IPT. With effect from 01/10/2016 the standard rate of UK IPT will increase from 9.5% to 10%.
As a MGA, we must account to our partner insurers. In order to ensure compliance with the transitional arrangements, business processed in relation to cover that incepted prior to 01/10/2016 will be taxed as follows:
Additional Premiums will be taxed at 10%.
Return Premiums will be processed using the tax rate that was applied to the transaction to which it relates, irrespective of inception date or process date.
All business incepting from 01/10/2016 will be taxed at 10% from 01/10/2016.
If you have any questions please do not hesitate to contact us on 01494 770700.