Budget 2017: No further increases to IPT

clock • 1 min read

Chancellor Philip Hammond has bucked the trend of recent Budgets in making no further increases to insurance premium tax (IPT) although draft legislation to prevent avoidance is being introduced.

The government had increased IPT three times in two years, taking the rate of IPT to 12% in the Autumn Statement 2016, meaning the UK has one of the highest rates in Europe. The general insurance industry had lobbied to prevent further rises to the tax which has led to large premium increases for consumers. Research from the Association of British Insurers had found that further increases to IPT could add a further £52.50 to the cost of the average private medical insurance policy.  Earlier this week, The Health Insurance Group warned that any further increase could cause people to...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Reeves to host meetings with financial services heavyweights over growth plans

Reeves to host meetings with financial services heavyweights over growth plans

Includes insurance and reinsurance leaders

Sorin Dojan
clock 21 January 2025 • 1 min read
FCA proposes that firms accept electronic verification of death

FCA proposes that firms accept electronic verification of death

Method to speed up bereavement claims

Jaskeet Briah
clock 20 January 2025 • 2 min read
Surge in probate delays following IHT changes

Surge in probate delays following IHT changes

134% rise in yearlong cases

Cameron Roberts
clock 16 January 2025 • 1 min read