'Raid on the responsible' - 12% IPT increase takes effect

Has doubled in 19 months

clock • 2 min read

Millions of people and businesses will be hit with increased insurance bills as the Government's increase in Insurance Premium Tax (IPT) takes effect from today.

This latest increase now means the rate of tax paid on most insurance policies has doubled, from 6% in 2015 to 12% now - in a period of only 19 months. The move will affect the 1.9m private medical insurance customers in the UK. The increase has significantly added to the cost of policies as the government now receives £7bn a year in IPT from UK insurance customers. Overall, the current rate of IPT at 12% could now be adding an extra £283 a year to a typical household's annual insurance bill as the rate has now doubled since November 2015, according to figures from the Association of ...

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

Join

 

Already a Professional Adviser member?

Login

More on PMI

PMI

Bupa rolls out full mental health cover to individual market

Time limits removed

Adam Saville
clock 07 June 2019 • 1 min read
PMI

VitalityHealth launches 'comprehensive' mental health package

Unlimited CBT and counselling

Adam Saville
clock 07 February 2019 • 2 min read
PMI

April UK withdraws from UK health insurance market

'Existing PMI customers will require advice'

Adam Saville
clock 19 July 2018 • 1 min read