Budget 2016: Insurance premium tax increases to 10%

Second rise in nine months

clock • 1 min read

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 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes



Already a Professional Adviser member?


More on Medical

Insurance premium tax puts UK at 'disadvantage'

Madicash disputes George Osborne's claims on IPT

clock 09 February 2016 • 1 min read

Capita buys medical reporting firm

Capita Group has bought Insurance Medical Group Limited (IMG) for an undisclosed sum.

clock 07 September 2011 •

Feeling the squeeze

In today's healthcare and protection market, it is difficult to choose how best to market your products on a budget - Philip Wood explains

Philip Wood
clock 13 April 2011 •