It was announced in the Autumn Statement that insurance tax will increase from 10% to 12% as of June next year.
One of Chancellor Philip Hammond’s justifications for increasing Insurance Premium Tax (IPT) is that the amount currently charged is much lower than in many other European countries. The Association of British Insurers (ABI) claimed that the UK is in fact had the eighth highest IPT rate in the EU prior to the Autumn Statement. This latest IPT increase now places the UK as the sixth highest in the UK, ahead of Austria and Malta.
Read more on the IPT hike here, and find out the implications that the Autumn Statement has for you and your family here.