ABI urges Chancellor to avoid increasing IPT in Budget

16 Oct 2018

The Association of British Insurers (ABI) has urged Chancellor Philip Hammond to avoid increasing Insurance Premium Tax (IPT) in the forthcoming Budget.

IPT is a charge on insurance premiums, and affects a range of insurance policies, including motor, business, property and pet insurance, as well as private medical insurance.

The ABI said that IPT has already doubled from 6% to 12% on three previous occasions between November 2015 and June 2017, and stated that 'responsible insurance customers' need not be 'penalised by another tax rise'.

The trade association has subsequently relaunched its '#IPTsUnfair' campaign, which urges the government to think before it implements further IPT rises.

'People buy insurance because it is a legal requirement or because they are wisely protecting their homes, businesses, families and health,' said Huw Evans, Director General of the ABI.

'Punishing these people with another tax rise would be inexcusable.'

Meanwhile, the Federation of Small Businesses (FSB) labelled IPT as 'ridiculous'. Mike Cherry, National Chairman of the FSB, said: 'The IPT deters small firms from making the right choices.

'It's hard for us to persuade small businesses to take on the different kinds of protection they need when they're constantly being hit with increases to this stealth tax.'

Copyright

© 2019 Volans, Leach & Schofield. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
0113 245 7031

Quick links

Home | Contact us | Credit | Site map | Accessibility | Disclaimer | Help |


Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the FCA.

Our FCA Register number is 542783 which can be checked at www.fca.org.uk/register. The Financial Conduct Authority does not regulate taxation and trust advice, personal finance and some aspects of commercial property investment.

Volans, Leach & Schofield is a trading style of Volans Limited - Company number 07549089.

Registered in England and Wales with registered office at Volans, Leach & Schofield, 10 Blenheim Terrace, Woodhouse Lane, Leeds, West Yorkshire LS2 9HX .

Directors: Christopher Smart FCA CTA and Martin Knaggs FCCA.

Please check the information in the Disclaimer page before proceeding.