New Business and Renewals:
The Government announced on 8th July that it would be increasing the standard rate of Insurance Premium Tax (IPT) from 6% to 9.5% with effect from 1 November 2015 for all new business, renewals and additional premiums for mid-term adjustments.
All new business and renewals with an inception / renewal date on or after the 1st November 2015 will be charged at 9.5%.
New business and renewals with an inception date prior to the 1st November 2015 will be charged at 6%.
Mid Term Adjustments on policies incepted or renewed before 1st November 2015:
i. Where there is a reduction in premium and a refund is required:
- IPT on return premiums will be credited at the rate applied to the initial premium being adjusted.
ii. Where there is an additional premium
- Additional premiums processed up to and including 29th February 2016, will be subject to the 6% IPT.
- Additional premiums processed after 29th February 2016 will be subject to the 9.5% IPT.