Further IPT hike would be 'double blow' for UK businesses, ABI warns

Insurance premium tax adds to 'cocktail of threats'

clock • 1 min read

Another increase in insurance premium tax (IPT) will be a double blow for business at a time when the UK economy faces a ‘cocktail of threats,' the Association of British Insurers (ABI) has warned.

The warning follows new figures published today that show last November's IPT increase could cost business nearly £500m in higher commercial insurance premiums, including health insurance. Further increases to IPT could cost business nearly £150m per 1% increase, the association said. It could also increase lower spending power of its customers - as many families face insurance bills about £100 higher as a result of the last increase The warning follows the decision to increase IPT by more than 50% - from 6% to 9.5% - at the summer 2015 budget, raising £8bn over five years- the big...

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