It’s not our fault, really it isn’t!
HM Government apply Insurance Premium Tax (IPT) to all general insurance policies. On 1st November 2015 the rate of IPT was increased from 6% to 9.5%. A further increase to 10% came into effect on 1st October 2106. This means that policyholders whose insurances fall due during October will feel the full effect of the increases.
IPT for travel insurance still stands @ 20%.
As insurance brokers, we receive no benefit from having to charge IPT. We do not receive commission on the IPT amount. We are simply tasked with collecting, collating, accounting and handing it over to the insurance companies who then have to hand it over to the Treasury. Yes, we are unpaid tax collectors!
So, if your premium has gone up this month, it really is not our fault. Don’t shoot the messenger!