Government raises insurance tax rate
From 1 October 2016, the standard rate of Insurance Premium Tax (IPT) will increase from 9.5% to 10%.
This rate applies to most types of insurance, including your NPA professional indemnity cover in your NPA Membership package.
The new rate of IPT will be reflected in membersâ€™ insurance premium upon renewal.
This is part of the Government-imposed tax rises that impacts all insurers and is not an NPA price increase.
The extra 0.5% was announced by George Osborne in his Budget in March this year, and adds to the 3.5% increase to standard rate IPT made by the Government last year.
The Government plans to use the money raised to improve ood defence schemes in England.
Now could be a good time for you to review the level of your general insurance (notably home and contents) cover to make sure you are not underinsured.
If you make a mid-term adjustment before theÂ 1 October, the adjusted price will not have to include the increased IPT.
For more information about the increase to Insurance Premium Tax visit the GOV.UK website.
For information on NPA insurance, visit npa.co.uk/insurance
With research suggesting a possible link between COVID-19 and EPs, make sure you’re confident discussing EPs and their treatment with customers