With effect from 4th January 2011, there will be an increase in the standard and higher rate of Insurance Premium Tax (IPT) and the standard rate of Value Added Tax (VAT) as follows:

• The standard IPT rate will increase from 5% to 6%
• The higher IPT rate will increase from 17.5% to 20%
• The standard VAT rate will increase from 17.5% to 20%

Allianz Commercial will be applying the new rates to all new business, renewals and additional premiums where the cover is effective on or after 4th January 2011. Where there is a returned premium, the IPT / VAT rate will correspond to the rate applied when the policy period commenced.

In order to ensure compliance with the new IPT rates, we require you to provide your Allianz branch with all policy information and documentation for policies effective before 4th January 2011 so that those policies can be processed prior to the end of December 2010.

This approach ensures there is clarity on the rates to be applied from a customer point of view.

Each bespoke scheme and arrangement will be looked at on an individual basis and, where necessary, our project team will contact you to discuss the changes required.

Please make sure your clients are aware of these changes. More information can be found on the HM Revenue & Customs website.

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