Effective 1 November 2015, standard rate of the UK’s Insurance Premium Tax will increase to 9.5% from 6.0% on new and renewal insurance policies. The higher rate of tax remains at 20%.
Also note that:
- Transitional arrangements exist for certain business to continue at the old rate.
- Anti-forestalling provisions exist for attempts to avoid the increased rate by extending cover, advancing premium payments, or applying additional premiums.