Autumn Statement 2016: IPT increases to 12%

This is the third increase to the rate of IPT announced in less than two years. It affects general insurance policies including private medical insurance but not protection policies which are exempt from IPT. Hammond (pictured) said: "Insurance premium tax in this country is lower than many other European countries and half the rate of VAT. In order to raise revenue, it will rise from 10% currently to 12% next June." The rate of IPT increased from 6% to 9.5% on 1 November 2015 and was announced in the 2015 Summer Budget by previous chancellor George Osborn. In the March 2016 Budget...