IPT Tax increase effective 1 June 2017
Christopher McClure defines the increase to Insurance Premium Tax (IPT) effective from 1 June 2017 –
- IPT increases from 10% to 12% with effect from 1 June 2017
- Premiums incepted on or after 1 June 2017 attract the higher %
- Premiums settled before 1 June 2017 are not affected by the % increase
HOWEVER –
- There is a 12 month transitional period from 1 June 2017 to 31 May 2018
- Premiums incepted prior to 1 June 2017 and settled before 1 June 2018 will retain the lower %
- Premiums incepted prior to 1 June 2017 but settled on or after 1 June 2018 will attract the higher %
For costs matters, this is only going to really arise in two circumstances –
- Pre-LASPO ATE premium taken out which is not going to be paid until on or after 1 June 2018; and
- Post-LASPO ATE premium for clinical negligence cases – the prescribed element of the premium remains recoverable inter partes
Christopher McClure is the North West Regional Manager for John M Hayes. Christopher maintains a busy caseload of varying complexity alongisde his duties as Regional Manager. In addition to drafting bills of costs, Christopher accepts instructions to prepare points of dispute, draft formal replies and negotiate settlements in a variety of legal areas. He is frequently instructed by clients to advise in relation to technical costs queries and regularly undertakes work in relation to the assignment of CFAs, QOCS, the various Portals and costs budgeting. An expert trainer, he is also a seasoned advocate who possesses a sound working knowledge of the Civil Procedure Rules. His advocacy experience extends to both costs-related advocacy (including hearings at the SCCO) and civil matters generally. Christopher is a contributor to the Personal Injury Brief Update Law Journal.
Contact Christopher at the Manchester Office on 0161 835 4087 or email: christopher.mcclure@johnmhayes.co.uk
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