Date of change: 1st November 2015
On 8th July 2015, George Osborne, Chancellor of the Exchequer, delivered his Summer Budget 2015 to Parliament.
One of the most controversial and unexpected features of the Budget was an increase to IPT. Considered a necessity by the Government but a surprise ‘stealth’ tax by industry insiders, the IPT increase has been met with consternation and confusion.
The rate of IPT will be increased from its current rate of 6% to 9.5% – and will apply to General Insurance policies starting or renewing on or after 1st November 2015.
What does this mean for you?
* All quotes produced during October at the 6% IPT rate must be put on risk by the 31st October with a policy start date no later than the 31st December.
* All quotations, illustrations and applications awaiting a start date, irrelevant of when produced, will expire on the 31st October and you will not be able to submit these policies with a 6% IPT charge.
* All quotations produced from the 1st November will attract the new rate of IPT.
* To put this into context, a £20 per month premium will increase by approximately 60p as a result of the IPT Increase.
If you have any questions relating to the increase in IPT, please feel free to give us a call on 0800 098 7090 or drop us an email at info@retirementprofessionals.co.uk.