Insurance premium Tax to increase by 3.5% from November 1st

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On the 8th July 2015 The Chancellor announced in his budget that the standard rate of insurance premium tax would increase from 6% to 9.5% effective from 1st November 2015

For Travel Insurance, mechanical appliances and certain vehicle insurance the rate would remain at 20%

This will affect the following clients (Please note this is not the complete list of business Quotax places that may be effected):

Taxi Insurance

Minibus Insurance

Short term (Temporary) Minibus Insurance

Coach and Bus Insurance

Commercial Insurance

Fleet Insurance

Private Car Insurance


Basic outline of changes:

 

New Business and Renewal transactions

  • Inception/renewal date before 1 November 2015: 6%
  • Inception/renewal date on or after 1 November 2015: 9.5%

 

Mid Term Adjustments (MTAs) on policies incepted or renewed before 1 November 2015

Refund Premiums (RPs):

  • Effective date of MTAs before 1 November 2015: 6%
  • Effective date of MTAs on or after 1 November 2015: 6%

Additional Premiums (APs):

  • Effective date of MTAs before 1 November 2015: 6%
  • Effective date of MTAs on or after 1 November 2015: 9.5%