Following the Budget announcement in March 2016, the standard rate of IPT charged to personal and commercial customers will increase by 0.5%.
This takes the standard rate from 9.5% to 10%, effective from 1 October 2016.
Standard Rate IPT
The rate increase is applicable to standard rate IPT only.
The higher rate of IPT ‚Äì charged for travel insurance, mechanical/ electrical appliances insurance and some vehicle insurance ‚Äì remains unchanged at 20%.
There are a number of exemptions from IPT, including:
‚Ä¢ most long-term insurance
‚Ä¢ insurance for commercial ships and aircraft
‚Ä¢ insurance for commercial goods in international transit
‚Ä¢ premiums for risks located outside the UK ‚Äì these may be liable to similar taxes imposed by other countries.
For more information visit the gov.uk website