Insurance Premium Tax rises to 10%

From 1st October 2016 the rate of Insurance Premium Tax has increased to 10%. Policies incepted or renewed after that date will attract tax at the new rate.

On 1st November 2015 the rate increased from 6% to 9.5%

For those with policies due for renewal in October will see the rate increase in one hit from 6% to 10%

The Government announced this move in The Budget in the Spring. The increase is designed to help  fund for more flood defences.

For more information, see the link below.

https://www.gov.uk/government/publications/changes-to-insurance-premium-tax-increase-to-standard-rate/changes-to-insurance-premium-tax-increase-to-standard-rate