Posted 09/03/2017
The latest 2017 Budget has caused concern after the Government failed to dismiss the increase in Insurance Premium Tax.
Despite a number of insurers, small businesses and charities calling for the increase to be scrapped, IPT will rise to 12% from the 1st June. This is estimated to effect every household by around £109 per year, on average.
However, insurers are most concerned that amidst these increases people will start to underinsure to ensure their premiums stay lower. The Association of British Insurers (ABI) were amongst those who signed an open letter to the Government urging them to rethink the price hike.
This comes soon after the tax rose from 6% to 9.5% in November 2015 and then to 10% in October 2016.
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