We’ve blogged about a few of the changes announced as part of the Autumn Budget on October 29th that we think may affect our small business customers (business rate cuts) and drivers (pothole fund).
But one announcement was made as part of the budget which shouldn’t be over looked and will affect all of our customers, and everyone that buys insurance in fact. This is the news that Insurance Premium Tax (IPT) will remain frozen at 12%.
Insurance premium tax is a tax introduced by the government and applied to all general insurance policies which every insurance provider has to charge. As VAT isn’t applicable on Insurance, IPT is charged instead. Introduced in the 90’s there have been many rises over the last few years with the tax reaching 12% in June 2017, the level at which it has remained since.
The news that IPT will remain frozen at 12% comes after calls from the ABI for IPT to not be increased further.
There are two types of Insurance Premium Tax
- a standard rate – the 12% rate mentioned above
- a higher rate – this stands at 20% at time of writing and is applied to travel insurance, mechanical or electrical appliances insurance and some vehicle insurance
Whilst this is positive news for those buying insurance, we understand there is constant pressure on budgets when it comes to the costs of insurance. At Anthony Jones, we work hard to understand our customers needs so that we are in the best position to achieve insurance premiums which represent value for money to your business.