Insurance Premium Tax (IPT) is due to rise by \u00a0another 2% to a new high of 12%, \u00a0as announced in the Autumn 2016 Statement by Chancellor of the Exchequer Phillip Hammond.<\/p>\n
This new rate will take\u00a0effect from June 2017, and is the third increase in IPT in less than two years. \u00a0In July 2015 it increased to 9.5%, and in March 2016 it increased to 10%.<\/p>\n
IPT is a tax on general insurance premiums such as home insurance, car insurance and travel insurance and\u00a0was first introduced in Britain in 1994, to raise revenue from the insurance sector.<\/p>\n
Insurance executives have criticized these tax rises, as they have contributed to a sharp increase in motor insurance premiums. Usually passed directly to policyholders, the tax is added as a percentage on top of the premium \u2013 so if you live in an area where insurance premiums are high you will pay more in tax.<\/p>\n
Research\u00a0by Mirror Money suggests that this latest rise will add an estimated \u00a351 to average household bills, whilst Consumer Intelligence estimates the average motor insurance premium of \u00a3788\u00a0 would increase by \u00a315 per year.<\/p>\n
The government hopes that\u00a0plans to crack down on the current \u201cunacceptably high\u201d number of whiplash claim payouts, alongside a freeze in fuel duty which was announced in the Autumn Statement, will save drivers money despite the IPT increase.<\/p>\n
However the British Brokers\u2019 Association (BIBA) has called the IPT increase \u201coutrageous\u201d, having lobbied the government for a freeze.<\/p>\n
In a statement the organisation said: \u201cThis increase comes at a time when both motor and home insurance premiums are rising and our fear is that many of those who most need it will avoid taking up insurance and be unable to afford the protection they need.\u201d\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"
Insurance Premium Tax (IPT) is due to rise by \u00a0another 2% to a new high of 12%, \u00a0as announced in the Autumn 2016 Statement by Chancellor of the Exchequer Phillip Hammond. This new rate will take\u00a0effect from June 2017, and is the third increase in IPT in less than two years. \u00a0In July 2015 it […]<\/p>\n","protected":false},"author":7,"featured_media":2420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[186,190],"tags":[141,142,144,239,121,240],"acf":{"related_articles":null},"_links":{"self":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/posts\/4391"}],"collection":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/comments?post=4391"}],"version-history":[{"count":0,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/posts\/4391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/media?parent=4391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/categories?post=4391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.networkportfolio.co.uk\/edwardsinsurance.co.uk\/wp-json\/wp\/v2\/tags?post=4391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}