Insurance premium tax is increased again in autumn statement
Insurers and motoring groups have reacted with fury for the government’s announcement that insurance premium tax (IPT) will rise to 12% from June next season.
The tax, which happens to be added onto 50m general insurance coverage annually including those for cars, homes and personal medical cover, have been described in the runup towards the statement from the industry because UK’s “fastest growing stealth tax”.
Announcing the extra 2% increase, the chancellor, Philip Hammond, said IPT rates in britain remained most of the lowest in Europe and therefore money was found it necessary to finance the government’s infrastructure plans. Nevertheless the Association of British Insurers (ABI) described the increase as being a “hammer blow for any hard-pressed”.
From 1 June 2017, most buyers of insurance coverage will dsicover the higher 12% rate added onto their premium.
Since IPT has been around since 1994 at 2.5% this has been steadily increased by successive chancellors. IPT is hiked 3x in past times 1 . 5 years: the latest rise