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

US insurers leading the AI arms race
New research from leading Insurtech provider, hyperexponential (hx), reveals that while insurers are energised by the potential of artificial intellig
Hurricanes and earthquakes could lead to USD300bn losses
Following the long-term annual growth trend of 5–7%, global insured natural catastrophe losses may reach USD 145 billion in 2025, mainly driven by sec
FCA set to launch live AI testing service
The FCA is seeking views from firms about how its live AI testing service can help them to deploy safe and responsible AI, which will benefit UK consu

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

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