Summer Budget 2010 - Insurance Premium Tax

Insurance Premium Tax

Rates of Tax

To match the increase in VAT, the higher rate of IPT will rise from 17.5% to 20% on 4 January 2011. Higher rate IPT is charged on insurance contracts which are sold with VATable goods, such as extended warranties on household appliances and cars, and also on travel insurance. The new rate will apply to premiums received or policies written by the insurer from 4 January onwards.

The standard rate of IPT, which applies to general insurance products such as household and motor insurance, will go up from 5% to 6% at the same time.

Designated Members : M.J. Jay, F.C.A. • P.E. Farrow, F.C.C.A., A.C.A. • J.W. Hall, F.C.C.A., A.C.A. • J.R. Turner, Dip. P.F.S., A.I.F.P. • R.D. Gray, A.C.I.B. • S.J. Edwards, A.C.A.
Member: S.T. Boote, B.Sc (Econ), F.C.A.

Offices at King's Lynn and Downham Market. Registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Mapus-Smith & Lemmon LLP is a registered limited liability partnership.