Insurance Premium Tax

Increase in the Standard and Higher Rate

The standard and higher rate of insurance premium tax (IPT) will increase to 6% and 20% respectively with effect from 4 January 2011. For insurers who use the cash receipt method to account for IPT, the new rates will have effect for premiums received under taxable insurance contracts on or after 4 January 2011. For insurers who account for IPT using the special accounting scheme the new rates will have effect for premiums that are written into their records as due to them on or after 4 January 2011.