HSB Engineering Insurance’s approach to Insurance Premium Tax (IPT) changes
New business and renewals
In line with guidance for insurers using the Special Accounting Scheme (SAS), up to and including 29 February 2016 the insurance policy commencement date will determine the rate of IPT applied to additional premiums and return premiums processed.
From 1 March 2016, all transactions (other than return premiums) will attract the new IPT rate of 9.5%, irrespective of policy commencement date. Return premiums will attract the IPT rate applied to the original policy.
The following table shows how the IPT rates will be applied by HSB Engineering Insurance:
|Insurance policy commencement date||Transaction||IPT rate applied until 29 Feb 2016||IPT rate applied from 1 March 2016|
|Before 1 November 2015||Premium increases – e.g. additional premiums||Old rate (6.0%)||New rate (9.5%)|
|Premium decreases – e.g. return premiums, cancellations||Rate of original policy||IPT rate previously applied|
|On or after 1 November 2015||Premium increases – e.g. additional premiums||New rate (9.5%)||New rate (9.5%)|
|Premium decreases – e.g. return premiums, cancellations, etc||Rate of original policy||Rate of original policy|