Chancellor urged to bring back tax relief for older PMI clients

Insurance premium tax 'ill-conceived', expert says


Tax relief should be opened up to prevent private medical insurance customers in their 60s lapsing their policies following due to insurance premium tax (IPT) costs, according to the Association of Medical Insurers and Intermediaries (AMII).

AMII chairman Stuart Scullion described the increase in IPT as "an ill-conceived and ill-thought through tax increase". Speaking at the AMII Health and Wellbeing Summit 2015 on 16 November, he added the increase would put both further financial and operational pressure on the NHS. The rate of IPT was increased from 6% to 9.5% from November 2015 resulting in higher private medical insurance premiums as insurers were unable to absorb the costs. Scullion said: "The IPT increase is estimated to raise an additional £177m per annum in revenue. If I look at our own business cost is the si...

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