As you may remember Insurance Premium Tax increased to 12% on 01 June 2017. As part of this most recent increase imposed by the government the transitional period for existing ATE policies incepted before 01 June 2017 was set at 12 months ending on 30 May 2018.
The effect of this to policies will be as follows:
If a new staged premium is triggered or an increase in premium applied after 30 May 2018 IPT will be charged at 12%. We will therefore endorse all policies after 01 June 2018 to record 12% for additional non-current premium stages.
Please note we will not issue endorsements for existing policies where IPT is recorded as inclusive or policies which state at the prevailing rate (the IPT will be calculated and confirmed automatically when the status is updated via the Temple Online Policy System).
Premium based purely upon damages awarded or costs recovered regardless of settlement stage
If the case is recorded settled after 30 May 2018, IPT will be charged at 12%. We will therefore endorse all policies after 01 June 2018. Policies will be endorsed to record 12% IPT unless the policy states at the prevailing rate.
Please note when updating the status of a policy to settled via the Temple online policy system the user will be informed of the correct IPT value applicable.
Please ensure during the next few weeks statuses are updated on TOPS to reflect the correct status, this will ensure that the relevant IPT has been included. If a matter has been settled before 01 June 2018 it is imperative it is updated via TOPS to ensure the IPT is not increased to 12%.
If you have any queries in relation to the above please do not hesitate to contact us.