Autumn Statement 2016: IPT increases to 12%

clock • 2 min read

The new chancellor Phillip Hammond (pictured) has announced a rise in insurance premium tax (IPT) meaning the rate will increase to 12% from June 2017.

This is the third increase to the rate of IPT announced in less than two years. It affects general insurance policies including private medical insurance but not protection policies which are exempt from IPT.  Hammond said: "Insurance premium tax in this country is lower than many other European countries and half the rate of VAT. "In order to raise revenue, it will rise from 10% currently to 12% next June."  The rate of IPT increased from 6% to 9.5% on 1 November 2015 and was announced in the 2015 Summer Budget by previous chancellor George Osborn.  In the March 2016 Budget, t...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on PMI

Six in 10 adults would choose PMI as top employer-funded benefit
PMI

Six in 10 adults would choose PMI as top employer-funded benefit

27% have self-funded treatment over the past five years

Jaskeet Briah
clock 10 September 2025 • 3 min read
Perci Health appoints medical director to support expansion
PMI

Perci Health appoints medical director to support expansion

Launch of new specialist clinics

Jaskeet Briah
clock 04 September 2025 • 2 min read
Private healthcare admissions hit second highest level in Q1 2025
PMI

Private healthcare admissions hit second highest level in Q1 2025

Insured admissions remain stable

Jaskeet Briah
clock 02 September 2025 • 3 min read