New anti-forestalling measures for insurance premium tax

Wed 08 Mar 2017

In today’s Budget the Chancellor announced new anti-forestalling provisions in relation to IPT.

These changes will take immediate effect.

The government will legislate to introduce new anti-forestalling provisions for IPT.  These new provisions will replace those already in place and will come into effect immediately. They will apply to the rate rise which comes into effect on 1 June 2017 and any future IPT rate rises.  The changes will affect insurers who provide non-exempt insurance cover for UK risks and the brokers or agents who act for them. The change is aimed at ensuring the increased rate of IPT is paid on premiums relating to policies which incept on or after a change in rate regardless of when the premium is paid. There will however be some exceptions in such cases as when it is normal commercial practice for the premium to be paid in advance.

For more information contact Linda O’Sullivan (linda.o’sullivan@mazars.co.uk)