Skip to main content

Changes To Insurance Premium Tax - Important Information

22 May 2017

What is changing?

As you’ll be aware, earlier this year, the government announced plans to change the rate of Insurance Premium Tax (IPT).

This will affect the premiums across our Home and Landlord’s Insurance product range.

Here are the key details:

  • For any policies taken out before 1 June 2017, IPT applies at 10%.
  • For any policy incepted or renewed on or after 1 June 2017, IPT will apply at 12%.
  • For full or partial policy cancellations, IPT should always be refunded at the rate that was previously charged.

What do you need to do?

When quoting for your customers before the end of May please be aware that that policies quoted up to 31 May 2017 will be quoted at 10% IPT, but any policy that incepts on or after 1 June 2017 2016 will attract a 12% rate of IPT. 

In cases where your customer has received or does receive a quote in May and the policy incepts from 1 June 2017, they will see a different total price in their new business documentation that is generated from your system from one that was quoted, due to the change in IPT.

Please inform customers who receive a quote for the rest of this month that this may occur if they don’t take out their policy before 1 June. 

If you have any queries, please don’t hesitate to get in touch.

 

 

 


New to
Legal & General?

Computer mouse
Setting up a general insurance agency

Apply to write business with us.

Your recently viewed items

You need javascript enabled for us to remember your Recently Viewed Items.

Top rated pages

You Might Also Like...