In the budget from 2015, the government have decided to increase insurance premium tax from 6% to 9.5%. This change will take affect from November 1st 2015.
How will this affect you?
The new rate will hit policies ranging from contents insurance to motor insurance. This tax is estimated to generate up to £1.75bn a year for the Treasury. So this may lead to your new insurance policies being a little bit more expensive compared to the previous year. On average, it’s going to affect the average household by a £73 annual increase on your car, household and medical costs.
Businesses will also be affected by the IPT increase as well as consumers; as the increase will apply to corporate insurance premiums.
If you would like to find out how much more tax you will be paying on your car insurance in your postcode area, have a look at this map from the Telegraph http://bit.ly/20cgBQ6. It will give you an average cost increase for a year.
Is there anything you can do about this?
Sadly there is nothing that you can do about the tax increase. Your insurance company and/or insurance broker will automatically incorporate the increase in the rate of tax to your policy premium.
If you wish to find out how this tax increase will be affecting you or would like more information about the different types of insurance policies that we offer, please speak to a member of our friendly team on 01782 607709. Alternatively, email us at firstname.lastname@example.org we will be more than happy to help and answer any questions that you may have.