Welcome to the first newsletter of 2017, and what an interesting start to the year it has been.
Insurance Premium Tax
Late last year the Chancellor announced, in the autumn statement, that yet again the IPT rate was to rise.
This means that from the 1st June 2017 the rate will increase to 12% which means, over the past two years, the IPT rate has doubled
Whilst this is bad news for the policyholder at least HMRC did give the insurance industry 6 months’ notice of the rise. BUT, and there is always a but, there have been numerous discussions with HMRC over their interpretation of the implementation of this new rise which differs from the interpretation taken on previous rises.
We have been working with other trade bodies [ABI, IUA, BIBA, LIIBA] and Lloyd’s and it was hoped that by the end of February the position would have become clearer. However, we are close and I would encourage all members to keep an eye on the press and our website for further information around the HMRC interpretation of the implementation of the current increase.