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Understanding Insurance Premium Tax

Answering your questions

The Insurance Premium Tax rate is changing. If you are liable to pay this tax, the payment you make to Avon will be automatically amended to take into account this rate change from December 2015. Please be assured that Avon is not increasing the cost of the cover we provide as we guarantee never to do this.

To help you understand what is happening, here are some frequently asked questions. If you cannot find an answer to your question below, please contact us – we’ll be happy to help you further.

  • What is Insurance Premium Tax?

  • Insurance Premium Tax, or IPT for short, is a type of tax that’s added to the premiums for everyday General Insurance cover for UK residents, such as car insurance, home insurance or personal accident cover. We pass the tax we collect directly to HM Revenue & Customs.

  • What is the rate of IPT?

  • The Insurance Premium Tax rate is a percentage of the payment, or premium, paid to Avon. In the July 2015 Budget, the Chancellor of the Exchequer announced that the IPT rate would increase to 9.5%.

  • Why is it increasing?

  • You can find out more about the July 2015 Budget at: www.gov.uk/government/topical-events/budget-july-2015

  • How does this affect me?

  • If you are affected, we will write to you to inform you of a small change to the premium you pay for the cover belonging to yourself or another person.

    The new tax rate will be applied automatically in December 2015. This means that you do not need to take any action yourself.

  • What type of insurance cover do I have?

  • If you are the policyholder you should refer to your policy document for comprehensive details of the cover you hold.
    You can also refer to the Product pages for generic information.

  • How was the cover set up?

  • Insurance cover administered and underwritten by Avon was offered by a bank, building society or other organisation. Cover was sold on a non-advised basis.

  • What do I need to do now?

  • Nothing! The Insurance Premium Tax changes will happen automatically. We will collect the increased payment from December 2015 on policies that you are required to pay this tax increase on.

  • How can I contact you?

  • By email: enquiries@avon-insurance.co.uk.

    In writing: Avon Insurance , Tiddington Road,Stratford-upon-Avon, CV37 7BJ.

    Or call us: Our telephone number for Insurance Premium Tax enquiries is 03303334807. We're expecting to be a little busier than usual, so please bear with us.

    Please remember to tell us your name, address and either your policy reference or the reference that appears on your bank or payment card statement when you contact us.

© Avon Insurance plc (No. 209606)

Registered in England. Registered Office: Tiddington Road, Stratford-upon-Avon, Warwickshire CV37 7BJ.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. A member of the NFU Mutual group of companies and the Association of British Insurers. For security and training purposes telephone calls may be recorded and monitored.