Don’t forget that as revealed in the Autumn statement (Nov 2016) that Insurance Premium Tax (IPT) will increase to 12% from 1st June 2017.
It is the third time the tax has been increased in less than two years – from 1st November 2015 it increased to 9.5% and then from 1st October 2016 it went up to 10%.
The British Insurance Brokers’ Association (Biba) had lobbied the government for a freeze. Chief executive Steve White commented “Insurance Premium Tax is a tax on protection and there should be no further increase in this regressive tax.”
Huw Evans, director general of the Association of British Insurers, the industry trade body, said the move was a “hammer blow for the hard pressed”. “Yet another increase … will hit consumers and businesses alike, hurting those who buy business, motor, property, pet and health insurance. It marks a doubling of insurance premium tax since last year,” he said.