IPT a ‘raid on the responsible’
The Association of British Insurers is calling a rise in Insurance Premium Tax, due to come into force on 1 June, as a raid on the responsible.
It’s warned that this latest increase could add an extra £47 to the average household’s annual general insurance bill.
IPT is rising from 10% to 12%, with the ABI saying that a 12% rate could equal an extra £283 a year to a typical household’s annual insurance bill as the rate has now doubled since November 2015.
James Dalton, director of General Insurance Policy at the ABI, said, ‘With a doubling of IPT in just under two years it is time to call a halt to this raid on the responsible. This tax penalises hard working families, as well as businesses, who have done the right thing by taking out insurance to protect against many of life’s uncertainties. This latest hike must be the last. The next government must freeze this tax, to give hard working households and businesses a break.’