IPT Announcement – June 2017 Rate Change
The standard rate of Insurance Premium Tax (IPT) rose by 2% from 10% to 12% with effect from 1st June 2017.
We have updated this announcement based on clarity received from HMRC.
This increase will affect any cases where ATE insurance premiums are raised after 1st June 2017. There will be no impact upon premiums which are currently insured, even where it is likely that we will not receive premium payment before 1 June 2018.
Below are some important scenarios to take note of:
- Any premiums settled by 1 June 2017 will not be affected by this change.
- Any premiums raised from 1 June 2017 onwards will attract the new rate of 12%. This will include revised premiums under the single fee structure and additional stage payments under the staged fee structure.
- Premiums issued prior to the 1 June 2017 and paid by the insured party’s representatives, to DAS Law Assist or our representatives, after 1 June 2017 will retain the lower rate originally applied to them.
If you have any queries regarding the impact of the IPT increase please do contact one of our Case Management Team Leaders or your Solicitor Account Manager on 0370 241 1345.