Home & Legacy’s approach to the change in Insurance Premium Tax August 2016
Posted on: 06 September 2016
In March 2016, the UK government announced an increase in the standard rate of Insurance Premium Tax (IPT) from 9.5% to 10% to help fund flood defences and resilience. The new rate is coming into effect on 1st October 2016 for all new business and renewals.
However, there is also a four-month concessionary period where the old rate can be applied to mid-term adjustments on policies incepted before 1st October 2016, this period runs up to and including 31st January 2017.
- Home & Legacy will be using the four-month concessionary period on all of our household and landlord property insurance policies – Prestige Home, Ultra Home, Ultimate Home, Prestige Landlord, Ultra Landlord and Tenant’s Contents Insurance.
- However, we will not be using the concessionary period on our motor insurance or our rent and legal protection products – Premier Motor, Ultimate Motor, Landlord’s Legal Expenses and Landlord’s Rent & Legal Protection.
The IPT charges outlined will be based on the effective date of a transaction.
We have created a Broker Notice to provide an overview of how Home & Legacy is approaching the change on all of our policies, including a reference matrix.
Please make sure your customers understand the increase in the tax and the financial implications on the relevant products they purchase from Home & Legacy.
If you have any questions, please call us on 0344 893 8370 or email us email@example.com