6 October 2014
The French Government has proposed to raise the rate of IPT on insurance contracts relating to Legal Expenses from 9% to 11.6%. The announcement was made during the 2015 Budget presentation (Projet de loi de finances pour 2015) on 1st October 2014 at the Ministry of Finance. Parliament will vote on the matter in the next couple of months. It is anticipated that the rate increase will take effect on 1st January 2015.
The French government’s aim is to collect an additional 25 million euros per annum on this type of contract. For reference, the total amount of premiums sold in 2012 in respect of insurance contracts relating to Legal Expenses was 970 million euros.
FiscalReps will keep you updated on the outcome of the vote and provide more details on the eventual implementation of this increase.