Following the increase in Insurance Premium Tax in 2015 from 6% to 9.5% there will be a further increase to general insurance policies with effect from 1st October 2016. As of this date insurers will pass on the increase of 0.5% to customers meaning a total amount of Insurance Premium Tax payable of 10%.
This is how this increase will be passed on to you:-
For policies issued prior to 1st October 2016 the insurance premium tax value will remain at 9.5%.
For all policies, new business, and renewals issued on or after 1st October 2016 the new rate of insurance premium tax of 10% will apply.
For adjustments made to policies that were issued before 1st October 2016 but where the adjustment occurred after 1st October 2016 please refer to your particular insurer’s guidelines.
For Travel Insurance policies the Insurance Premium Tax rate remains at 20%.