..... ..... .....
..... ..... .....
...... ......

Insurance Premium Tax increase from November 1st 2015

In this year's Summer Budget, Chancellor George Osborne announced that Insurance Premium Tax (IPT) would increase from 6% to 9.5%, for all insurance premiums paid from November 1st 2015. IPT is a tax that is applicable to all insurance products.

This means that the insurance elements of our products will be affected. However the inspection element and Building Control prices, remain unchanged. How the change will affect your C-R-L quote The new standard IPT rate of 9.5% will be due on insurance premiums paid on or after 1 November 2015. There are a few different scenarios to consider:

  • If we issued a quote before 1 October 2015, it will be valid for 30 days and subject to IPT at the rate of 6%.
  • If we issue a quote on or after 1 November 2015, it will be valid for 30 days and subject to IPT at the rate of 9.5%.
  • If we issue a quote during October, it will be valid for 30 days and subject to IPT

Specialists in Construction Insurance

  • at the rate of 6% if you accept the quote, register and pay for the homes covered by the quote before the end of October; otherwise
  • the rate of 9.5% will apply if you accept the quote, register and pay for the homes covered by the quote in November. In this scenario your homes will still be registered but an underpayment will be generated, due to the increase in IPT, and you will be charged the difference.

Any issued quotes that are over 30 days old, at the point of registration, will be recalculated and the appropriate rate of IPT applied. Homes will still be registered, but you will be charged any outstanding balance. Therefore, in order to pay the lower 6% rate of IPT, you will need to accept our quote within 30 days of the date of issue, register and pay for the homes before the end of October. If you're looking to beat the deadline, be sure to get your quote now.

Topic:

Stay Updated

Join our email list to receive useful tips, practical technical information and construction industry news by email. Relevant to everyone in the industry. Your details will be shared with no one else.