- Insurance Premium Tax now equates to a median of practically £100 to motor and mixed buildings/contents home insurance coverage insurance policies.
- It is prone to hit the poorest the toughest who spend proportionately extra on insurance coverage, akin to motor and home.
The Association of British Insurers is urging the Chancellor to cut back the speed of Insurance Premium Tax (IPT) in subsequent week’s Autumn Statement to assist hundreds of thousands of households and businesses handle their rising insurance coverage prices.
For motor and home insurance coverage alone, IPT now usually equates to £98 a 12 months. For a pair with different insurances akin to well being cowl, this determine might leap to £500 a 12 months.
IPT applies to most common insurance coverage insurance policies together with motor, home, pet, and personal medical insurance coverage. The customary fee has doubled to 12% since October 2015. It is prone to hit the poorest the toughest who spend proportionately extra on insurance coverage, akin to home and motor.
Examples of IPT
For a single person with a automobile (1x motor), renting a flat (1x contents solely) and journey insurance coverage (1x journey) – this equates to £87.11 of IPT.
For a pair with 2 automobiles (2x motor), their very own home (1x mixed property), a pet (1x pet) and each with journey cowl (2x journey) – that is £231.21 of IPT. If considered one of them had private PMI (i.e. not by work) this may equate to £500.70 of IPT.
Last 12 months, the tax made £7.45 billion for the Government. Since its introduction, IPT has elevated extra quickly than the tax fee utilized to alcohol and playing and has had comparable rises to tobacco responsibility.
Mervyn Skeet, the ABI’s Director of General Insurance Policy, stated:
Mervyn Skeet, the ABI’s Director of General Insurance Policy, stated: “Insurers are doing all they can to offer competitively priced insurance, despite facing some substantial increases in costs outside of their control. Now has never been a better time for the government to show its support to the millions of homeowners and businesses who do the right thing by protecting their families and livelihoods against sudden financial shocks, than to reduce Insurance Premium Tax.”
Enquiries to:
|
Malcolm Tarling |
020 7216 7410 |
Mobile: 07776 147667 |
|
Helen Mitchell |
020 7216 7411 |
Mobile: 07834 328512 |
Details of ABI publicly available and by subscription knowledge right here:
The Association of British Insurers is the voice of the UK’s world main insurance coverage and long-term financial savings trade. A productive, inclusive, and thriving sector, we’re an trade that gives peace of thoughts to households and businesses throughout the UK and powers the expansion of native and regional economies by enabling commerce, danger taking, funding and innovation.
More information and knowledge from the ABI is available on www.abi.org.uk .
