The Budget 2016 – Another Tax Increase

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By Ben Scott
Marketing Manager

Ugh. I know. We know.

There is a common misconception by the public that all companies involved in the insurance sector enjoy increased costs for our paying customers. That we all get loads more profit to line our pockets. That the customers all lose out, and we all love it. We don’t. It does not benefit us, in fact, it actually just causes us headaches when we have to explain to our loyal customers why their insurance premiums have increased yet again. Ugh.

The IPT (Insurance Premium Tax) was last increased in November 2015 from 6% to 9.5%; it’s now set to rise to 10% in due course, thanks to the announcement by George Osborne yesterday. There was initial speculation and concern that the standard rate of insurance tax could be increased to 12.5%; we are relieved that isn’t the case, despite the disheartening decision to increase it again.

Unfortunately, as a result of the tax increase, you may again see a proportionate increase in the cost of your insurance premium at renewal. Connect Insurance will continue to fight on your behalf to provide the most competitive quotations possible.