Brokers cautioned to take note of fixed-premium IPT exception
Despite the Chancellor's u-turn on the imposition of IPT on intermediary fees, brokers have been warned that they may still apply to add on policies such as legal expenses and breakdown cover.
As reported in Insurance Age (January 2010, p1), in its pre-Budget report, the Government announced that Insurance Premium Tax (IPT) was being extended to fees on personal lines insurance sold though brokers with immediate effect.
However, in the full 2010 Budget the Government scrapped plans to charge IPT on fees provided the premium charged within the contract varied with the risk. The move was welcomed by both the British Insurance Brokers' Association and Institute of Insurance Brokers.
IPT
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