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IMPORTANT: Changes to Insurance Premium Tax affecting NHBC Buildmark

In this year's Summer Budget, the Chancellor announced that Insurance Premium Tax (IPT) would be increased from 6% to 9.5%, for all insurance premiums paid from 1 November 2015.

IPT is a tax which is applicable to all insurance products. This means that the insurance elements of our own market-leading range of Buildmark products will be affected. However the inspection element of Buildmark products, and Building Control prices, will remain unchanged.

How the change will affect Buildmark quotes to our registered builders and developers

The new standard IPT rate of 9.5% will be due on insurance premiums paid on or after 1 November 2015.

There are a few different scenarios to consider:

  • If we issued a quote before 1 October 2015, it will be valid for 30 days and subject to IPT at the rate of 6%.
  • If we issue a quote on or after 1 November 2015, it will be valid for 30 days and subject to IPT at the rate of 9.5%.
  • If we issue a quote during October,it will be valid for 30 days and subject to IPT
    • at the rate of 6% if you accept the quote, register and pay for the homes covered by the quote before the end of October; otherwise
    • the rate of 9.5% will apply if you accept the quote, register and pay for the homes covered by the quote in November. In this scenario your homes will still be registered but an underpayment will be generated, due to the increase in IPT, and you will be charged the difference.
  • Any issued quotes which are over 30 days old, at the point of registration, will be recalculated and the appropriate rate of IPT applied. Homes will still be registered but you will be charged any outstanding balance.

Therefore, in order to pay the lower 6% rate of IPT you will need to accept our quote within 30 days of the date of issue, register and pay for the homes before the end of October.

If you have any questions or concerns about this change please contact Customer Services on 0844 633 1000, and ask for the 'Home Registration' team when prompted.

News Date: 16/10/15