Chancellor of the Exchequer George Osborne announced at the last budget that the standard rate of insurance premium tax (IPT) will rise from 6% to 9.5% from 1 November 2015.
The increase will apply to all classes of insurance including Professional Indemnity. News of the increase was met with disappointment by the insurance industry. British Insurance Brokers’ Association CEO, Steve White, said: "We are extremely disappointed in this rise in insurance premium tax and will mean insurance will become more expensive for the public as a result. Those hit by this stealth tax will include the 20.1 million households with contents insurance; 19.6 million with motor insurance and 17 million with buildings insurance. 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. We hope the Government will review this rise and correct it in further budgets."
Unlikely Steve, but we live in hope.