IN the 2015 budget, the government announced an increase in the rate of Insurance Premium Tax (IPT) from six per cent to 9.5%.
IPT applies to all insurance policies, whether personal or commercial. With effect from November 2015, any new policy, renewal of an existing policy or mid-term adjustment to a policy will invoke an IPT charge of 9.5 per cent instead of 6 per cent.
Although an increase was widely anticipated within the industry the severity has taken many by surprise, with the British Insurance Brokers’ Association (BIBA) labelling the increase a ‘stealth tax’. For the vast majority of businesses, insurance is a compulsory purchase and therefore this is yet another increase in fixed costs during a time when economic recovery is still very much on-going across many sectors.
With this additional tax burden it remains more important than ever to ensure your insurance arrangements are correctly and competitively placed. Lorica Insurance Brokers, based in Indian Queens, offer business owners a free no-obligation review of their insurance programme. In addition to the cover improvements and premium savings we may secure for you as part of our review we have a Special Offer for readers of Business Cornwall.
Lorica Insurance Brokers will contribute the additional 3.5 per cent tax cost on any new commercial insurance enquiry received before 31 December 2015, irrespective of your current renewal date.
For more details please contact David Easdon on 01726 869003 or email firstname.lastname@example.org quoting reference ‘Business Cornwall offer’