The Budget 2010 is in effect. Chancellor George Osbourne has announced an increase to IPT (Insurance Premium Tax) from 5% to 6%. Higher Rate IPT is increased in line with VAT from 17.5% to 20%.
This will be introduced as of January 4th 2011. Current estimates of IPT are 2.3 Billion in tax per year.
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It could have been a lot worse: this site http://www.tmf-vat.com was saying it would rise to 10%. It hardly seems worse the trouble given the £150 billion+ deficit.
A lucky escape for the insurance industry??
Dave
Anyone else noticed that for every forced rise in insurance premiums caused by tax hikes, the number of uninsured drivers goes up?
This is really a noticeable rise thank to those forces.
That is a very obvious effect of forced rise in insurance premiums caused by tax hikes. It is a sad trend but we have to face it. Actually, I myself will have to withdraw from any of my insurances if budget does not permit. I think that is an immediate decision if there is a tax hike.