Insurance Premium Tax on the rise

The move, which will see IPT jump by 3.5% to 9.5% from November, will unfortunately mean that the cost of business insurance will rise. 

The increase in IPT is expected to raise up to £1.75bn per year for the Treasury, and there is a widespread belief that IPT rates will eventually be aligned with those for VAT so future increases may well be on the cards. For now though, the Government has attempted to justify this latest rise by stating that IPT rates in the UK are still among the lowest  in Europe.

Whilst the new IPT rate will push up the cost of business insurance, the advice to all is to resist the obvious temptation to counteract this by reducing protection. 

Making sure that the correct cover is in place remains as important as ever