Tax Alert: France - IPT Applicable on Death Cover of Payment Protection Insurance
Death cover of Payment Protection Insurance will be subject to 9% Insurance Premium Tax (IPT) for contracts issued on or after 01 January 2019. Previously such covers were subject to an IPT exemption. The change has been approved by the French Parliament as part of the 2019 Budget Law voted just before Christmas.
The change will not affect PPI contracts issued before 01 January 2019. For such contracts, IPT exemption on the death cover will remain applicable on all renewals.
If you have any questions, please let your client team know.