Slow insurer processing could mean a backlog of IPT charges
Brokers could be left to foot the bill if insurers choose to apply the Insurance Premium Tax (IPT) increase from the date it hits their books, according to the British Insurance Brokers' Association (Biba).
The rise, which will result in the standard rate of IPT climbing from 5% to 6% and the higher rate of 17.5% increasing to 20%, will be implemented on 4 January. However, the Government has not allowed for any transitional provision, which would permit for policies signed before the deadline, but not processed by the insurer, to be processed at the old rate.
Steve White, head of compliance at Biba, said if insurers chose to apply the tax from the date they dealt with the policy rather than when
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