Insurance Premium Tax


Industry reacts to George Osborne’s Budget announcement to increase Insurance Premium Tax

The increase of the Insurance Premium Tax (IPT) from 6% to 9.5% from 1 November came as a shock to the industry when it was announced by Chancellor George Osborne in his Budget this July.

The dust has settled since the surprise statement, but some experts in the industry are still concerned about the effects the rise could have on the market.

Malcolm Tarling, chief media relations officer at the Association for British Insurers (ABI), highlighted that this was a particularly bad time for a tax rise given that motor premiums had been falling in recent years.

“It’s up to the individual insurers whether they decide to increase prices, but I suspect that in the current market this will be the norm,” he said.

Article from Insurance Age