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Adrian Smith, Global Head of Insurance Premium Tax (IPT), at KPMG commenting on a possible IPT raise said: “Given IPT was raised from 6% to 9.5% last summer, the tax would have more than doubled in 9 months if it did rise to 12.5%. Increasing IPT to 12.5% is likely to generate an additional £1.5bn for the Government, bringing the total IPT take to £6bn per annum. |
"Speculation over a possible increase in IPT is of course bad news for UK insurers but should worry us all. We are already under-insured as a society and any increase in premiums will inevitably lead to some individuals or businesses deciding to do without as the costs are passed on to end users.
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