Rentguard Insurance – IPT Rate Changes

Rentguard Insurance – Important Notice: IPT Rate Changes

As you may already be aware, there are impending changes to UK IPT charges, which will come into effect from the 1^st November 2015.

The standard rate on all products we offer will rise from 6% to 9.5% (excluding Travel Insurance which will remain at 20%)

You may find this most noticeable on renewal premiums, as this may affect the price at which it is offered.

For a detailed breakdown of the changes, please see the points below:

• The higher rate (5%) tax is to be applied at the date the contract was ‘made’, HMRC have defined ‘made’ as meaning the date at which the policy incepts. Therefore any new or renewal policy which has an effective date from the 1^st November or later will be charged at a higher rate.

• All policies which start before this date will remain at 6%.

• Additional premiums in respect of policies which incepted prior to the 1^st November implementation date may be taxed at the current 6% rate if they are processed before the 1^st March 2016.

• Return premiums must be processed using the rate of tax customers were charged when cover commenced irrespective of the date at which they are processed.

• From the 1^st March 2015 all transactions, irrelevant of the start date will attract the higher rate.

Our systems will be automatically adjusted to allow for the changes, meaning there will be no disruption to our service or action required from yourselves.

As always, if you wish to discuss this or any matter with Rentguard Insurance, please call their Customer Services team on 020 85871 060.

By Terry Rogers