The government recently announced an increase in the standard rate of insurance premium tax from the current rate of 6% to 9.5% coming into force on non-exempt policies with an effective date of 1st November 2015 or later.
How will this affect you?
This will have little affect on the average policyholder, aside from a slight increase in the premium that you pay.
Do I have to do anything?
No. Your Insurance Company and/or Insurance Broker will automatically incorporate the increase in the rate of tax applicable to your policy premium.
Does everyone have to pay this tax?
Most insurance policies are affected by this tax, however certain covers do have an exempt status, such as some marine policies for international shipments. Some policies, such as personal travel insurance, already have a higher level of insurance premium tax.
If you have any questions regarding insurance premium tax and how it may affect you, please give us a call on 01253 764294.