News analysis: IPT hike – industry fears further rise
As IPT is raised to 12%, many commentators wonder if a VAT-matched rate of 20% is on the cards
The rate of insurance premium tax (IPT) will rise again next June to 12%, the third increase in the space of 18 months (see graph below).
Brokers launched a scathing attack on chancellor Philip Hammond after the November Autumn Statement, claiming IPT is a stealth tax on consumers.
The government maintained in an official statement that IPT is a “tax on insurers and it is up to them whether and how to pass on costs to customers”.
But Brendan Dawson, group managing director of insurance
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