Chancellor George Osborne has announced that insurance premium tax (IPT) will increase by 0.5% to a rate of 10%.
This is the second increase to IPT in less than nine months. Osborne said:"I am going to increase the standard rate of insurance premium tax by just half a percentage point - and commit all the extra money we raise to flood defence spending. "That's a £700m boost to our resilience and flood defences." The rate of IPT increased from 6% to 9.5% on 1 November 2015 and was announced in the 2015 Summer Budget. To explain the initial increase, the Chancellor said this increase would bring the UK in line with the rest of Europe. The industry had speculated prior to the 2016 Budget ...
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