Insurance Premium Tax
Insurance Premium Tax, IPT was increased from 10% to 12% from 1st June 2017.
Here's an explanation of how it will affect your caravan insurance
The first important thing to understand is that the correct rate of tax has to be paid based on the active date of the insurance. This means that unfortunately you can't pre pay for your insurance in order to beat the tax change. We have to start collecting the tax at 10% for any insurance policy that starts on or after 1st June 2017, which means that any caravan insurance policy with a start or renewal date on or after 1st June 2017 and for any changes to a policy, that involve an additional premium, with an active date for the change on or after 1st June 2017 all will have IPT of 12% charged on them.
There are complicated rules that apply if you pay an additional premium after the start date on a policy started before it and then subsequently cancel the policy that is subject to a refund. In this situation you will have paid two rates of tax and if you are due a refund of premium you are also due a refund of IPT. We will do our best, when calculating your refund, to make sure that you don't lose out but you need to be aware that we are instructed that we must not refund Insurance Premium Tax at a higher rate than you paid it. If possible we will calculate the refund of tax proportionately.
Quotations Prior to 1st June 2017
If you have received a caravan insurance quote prior to the change date that shows IPT of 10% and decide to take up the quote with a start or inception date after 1st June 2017 then the quote will be recalculated with 12% IPT on it and unfortunately you will have to pay this higher rate of IPT.
If you would like further information on how IPT will affect you please feel free to telephone us on 0800 3282084 which is a free call from land lines and mobile phones in the UK.
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