Increase in IPT from 1st October 2016

07/09/2016

IPT

TFP's approach to the increase in IPT from 1st October 2016
Earlier this year the Chancellor confirmed an increase in the standard rate of IPT in the Summer Budget from 9.5% to 10%.

This change will be effective from the 1st October 2016.

TFP Schemes Position

We can confirm the following approach during the transitional period will apply to all TFP policies: 

New Business And Renewal Transactions

  • Inception / renewal date before 01st October 2016-9.5%
  • Inception / renewal date after 01st October 2016 - 10% 

 

Mid Term Adjustments (MTA's) on policies incepted or renewed before 01st November 2015

Return Premiums (RP's)

  • Effective date of MTA's before 01st October 2016-9.5%
  • Effective date of MTA's  on or after 01st October 2016-9.5% 

Additional Premiums (AP's)

  • Effective date of MTA's before 01st October 2016-9.5%
  • Effective date of MTA's on or after 01st October 2016 - 10%

All policies with an inception/renewal date of 1st October onwards will be subject to the standard IPT rate of 10%

Please ensure that your clients are aware of these changes. More information can be found on the Gov UK website

If you have any queries or require any further information, please do not hesitate to contact us.

Yours faithfully,

SJM_Signature

Sharon Morse
Fraud, Compliance & Technology Manager

  • 2008 UK Broker Award
  • 2010 British Insurance Awards
  • 2011 UK Broker Award Finalist
  • 2013 UK Broker Award Winner
  • RAC
  • Aviva