Insurance Premium Tax and other Parafiscal Taxes
Members will be aware that for a number of years the Association has met the costs of Insurance Premium Tax (“IPT”) and other parafiscal taxes for certain Members by reason of regulatory changes that affected the Association in 2008. These changes mainly affected certain EU based Members. The decision to continue to meet this cost is one that has been reviewed annually as outlined in circular 2011/4 in November, 2011.
The Association’s Directors recently concluded that from the 2013 policy year onwards the costs of IPT and other parafiscal taxes should be borne by those Members concerned. Where applicable, debit notes will be adjusted to take account of these taxes, but Members who are not affected will not notice any alteration to the way in which premium is debited.