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Posted by Let Alliance on October 13, 2015
HM Revenue & Customs are increasing the level of Insurance Premium Tax
as from 1st November 2015
Insurance Premium Tax (IPT) is a tax on general insurance premiums. The rate is being increased from 6% to 9.5% and will hit policies ranging from motor to pet insurance but importantly for our industry it extends to Buildings & Contents Insurance as well as Rent Guarantee Insurance.
Mr Osborne sought to justify the increase by arguing that the cost of premiums had fallen for many families, and that Britain’s insurance premium tax was well below that of other countries – Germany, for example, levies 19pc.
The Chancellor said that the move would affect only one-fifth of all premiums, but the British Insurance Brokers Association slammed the move as a “stealth tax” on insurance policies that would hit millions of ordinary households.
“The Government has been working with the industry to reduce the cost of insurance for consumers – including a summit chaired by the Prime Minister. It therefore seems counterintuitive to be taking measures which will add to the cost – effectively taxing protection,” said Steve White, BIBA chief executive.
Let Alliance always puts our customers first and we have already written to all tenants who have purchased a Contents and/ or Liability Insurance policy from us. We are also informing all Landlords of the increase if they have purchased a Buildings and/or Contents Insurance policy from us.
If you have any questions, please call our Insurance Team on 01244 421167 and we would be happy to help.