02
June
2017
The rate of tax on insurance premiums rose from 10% to 12% on 1 June 2017 which will result in an increase in the cost of insurance for most premiums.
This increase was announced in the 2016 autumn statement when the Chancellor Philip Hammond stated that the standard rate would increase in June 2017. This is the third successive hike in IPT which has taken the rate levied on insurance products from six per cent in November 2015 to the current 12%.
No future increases have been announced as yet and the higher rate, which is levied on insurances such as travel, is remaining unchanged at 20%.
By GCMA
