On 1 June 2017 the standard rate of UK IPT increased from 10% to 12% - the third rate increase in just over 18 months. The following summary table should assist when determining the correct rate of UK IPT to apply to a premium, however it should be noted that exceptions may apply. For full details, please consult Lloyd’s Crystal or Market Bulletins Y5070, Y4999 & Y4918.


Rate Change

Implementation Date

End of Transitional Period

6% - 9.5%

1 November 2015

29 February 2016 (4 months)

9.5% - 10%

1 October 2016

31 January 2017 (4 mnths)

10% - 12%

1 June 2017

31 May 2018 (12 months)


All policies incepting after the implementation date of a rate change must have tax charged at the new rate. For policies incepting before the implementation date, a transitional period applies during which these policies should be processed. Policies processed after the end of the transitional period must have tax charged at the new rate, irrespective of the inception date.


For example, a policy incepting on 1 September 2015, but processed on 1 August 2017, should have tax charged at 10% (as the policy is processed after 31 January 2017).


Return premiums must be processed using the tax rate that was originally applied to the transaction to which it relates.


For additional information, or if you have any queries, please contact Lloyd’s Tax Department:


Charlie Dyer

Indirect Tax Advisor

t: +44 (0) 207 327 6836

e: charlie.dyer@lloyds.com