General Insurance Article - Another rise in IPT would hit the countryside hardest

NFU Mutual warns that further increases in the rate of Insurance premium Tax (IPT) in the Chancellor’s forthcoming budget would hit farmers and country people disproportionally hard

 The rural insurer, which protects over 70% of the UK’s farmers and thousands of other businesses and country people is concerned about suggestions of a further rise in the rate of Insurance Premium Tax in the forthcoming budget on November 22.

 “We are very concerned that repeated rises in IPT are putting an unfair burden on people who have to use vehicles to live and work,” said Lindsay Sinclair, NFU Mutual Chief Executive.

 “Since 2005, the Chancellor has increased IPT from 6% to 12%, as a means of increasing Government funds without increasing headline income tax of VAT.

 “The countryside relies on vehicles - whether you use a car to get to work, are retired and need to get to a hospital appointment, or are a farmer using tractors, quad bikes and combine harvesters to produce food for the nation.

 “All these vehicles need insurance and ever-higher rates of IPT are placing an unfair burden on country people – particularly young people who often need to drive to get to work because bus services are not an option in many parts of the countryside.”

 For a rural homeowner with a medium-sized car living in the countryside, IPT typically adds over £100 to their annual costs at today’s rates. For a large farm business with a fleet of tractors, a quad, a 4 x 4 vehicle and a combine harvester in addition to buildings, stock and equipment, IPT could add over £1,000 to their costs.

Back to Index

Similar News to this Story

Ten steps insurers are taking to tackle motor cover costs
Insurers announce actions to bring down costs after premiums increased 25% in 2023
Third of drivers forced to pay monthly for car insurance
Research by comparison site Money Expert has revealed a third of drivers in the UK will be considering monthly payment instalments to afford their car
Lloyds provision for FCA investigation lower than expected
Q4 profit before tax £1.8bn vs £1.7bn consensus. Q4 Net interest margin 2.98%. Unwound £541mn of loan loss impairments. £450mn provision for impact of

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.