Higher Tax On Insurance Premiums Starts From 1st November 2015

31st October 2015

It may have slipped many people's notice form the last budget in July but from 1st November 2015 there will be higher taxes levied on insurance premiums.

The tax increases from 6.5 percent to 9 percent. Estimates vary from £50 to £100 for average households with insurance cover on things like home, cars, pet and many others types. Of course some will pay small amounts or nothing if they do not pay any insurance. But for most households with multiple insurances they will see the increase when paying premiums.

This measure will have effect from the date that Summer Finance Bill 2015 receives Royal Assent. The new standard rate will be due on premiums treated by the legislation as received on or after 1 November 2015, except where insurers operate a special accounting scheme. In that latter case, the new standard rate is only applied to premiums relating to risks covered by the terms of a contract entered into after 1 November 2015. From 1 March 2016, the new standard rate applies to all premiums, regardless of when the contract was entered into.

Details can be found at -
www.gov.uk/government/publications/insurance-premium-tax-increase-to-standard-rate/insurance-premium-tax-increase-to-standard-rate