3 August 2015
In the Budget on 8 July the Chancellor announced that the rate of IPT would rise from 6% to 9.5% with effect from 1 November 2015. For those accounting for IPT on a cash received basis, any premium received on or after 1 November will be subject to the new rate.
For insurers operating the Special Accounting Scheme, there is a four month transitional period allowing the old rate to apply for policies with inception dates prior to 1 November. This means that the following rates are applicable:
Written Premium Date - 31 October 2015 or earlier - 6%
Inception Date - 31 October 2015/Written Premium Date - 1 November 2015 - 6%
Inception Date - 31 October 2015/
Written Premium Date - 29 February 2016 - 6%
Inception Date - 31 October 2015/Written Premium Date - 1 March 2016 - 9.5%
Written Premium Date - 1 March 2016 or later - 9.5%
Written Premium is defined by HMRC in their Public Notice as “when your accounts show the premium due to you”.