Another increase in Insurance Premium Tax
We feel like apologising for yet another increase in the standard rate of insurance premium tax (IPT) which will apply to policies with effect from 1st June 2017, but of course, we don’t have much say in Government policy.
The Chancellor’s decision to increase the rate from 10% to 12% seems harsh. Only two years ago, we had a rate of 6%. We know that this doubling of the tax has increased the cost burden on your business. We wish we didn’t have to pass the increase on, but unfortunately, we work so hard to keep our premiums low that we have no choice. The increased rate will apply to all insurance policies from 1st June.
We believe that even with the increase our policies are excellent value. If you’re worried about the extra cost, call us, and we’ll check that the cover is still appropriate for your needs. Taxed or not, nobody should be paying for cover they don’t need.
You might find a bit of comfort from the fact that there wasn’t another increase announced in the latest budget. If things change again, we’ll let you know.