Exclusive: Labour clarifies PMI IPT stance - policyholders unlikely to cancel and cashplans exempt

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Exclusive: Labour clarifies PMI IPT stance - policyholders unlikely to cancel and cashplans exempt

The Labour Party has disagreed with the insurance industry's view that private medical insurance [PMI] customers would cancel their policies in droves following further IPT increases by saying that there has been no discernible impact on customers cancelling policies in light of tax changes to PMI in the past.

In pre-election pledge this week, Labour Leader Jeremy Corbyn announced that a Labour government would increase IPT from 12% to 20% on private medical insurance policies in order to pay for free hospital parking. This would impact both individual and corporate policies. A Labour spokesperson told COVER that Labour Leader Jeremy Corbyn would seek to increase IPT on PMI and not on other general insurance policies such as home or motor insurance. Health Cash plans would also be made exempt from...

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