ABI criticises 'raid on the responsible' as IPT rises to 10%

clock • 2 min read

The second of insurance premium tax (IPT) increases in less than a year officially comes into effect from the 1st October 2016 affecting over 50m insurance policies.

The standard rate of IPT, which applies to most general insurance policies purchased in the UK, is going up to 10% after being increased by the previous Chancellor George Osborne in the Budget in March this year.  Huw Evans director general of the Association of British Insurers (ABI) described the two IPT increases as a "raid on the responsible." This follows a previous rise from 6% to 9.5% which came into effect at the beginning of November last year, meaning the tax itself has risen by more than 66% in less than a year. The new rate is likely to add over £52.50 to the average pr...

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