The UK is planning an increase in the standard rate of insurance premium tax (IPT) that will hit all insurers who provide non-exempt insurance cover for UK risk.
The amendment, announced on 16 March as part of the Budget, will increase the rate of IPT paid on premiums, which are taxed at the standard rate of IPT, by half a percent.
The current IPT standard rate stands at 9.5 percent.
??Revenue raised from the amendment will be used to fund flood defences and resilience.
The new standard rate of IPT will be due on insurance premiums treated by the legislation as received on or after 1 October 2016, except where insurers operate a special accounting scheme.
From 1 February 2017, the new rate applies to all premiums, regardless of when the contract was entered into.
