Insurance premium tax to increase from November

You may have read in the Chancellor’s summer budget that Insurance Premium Tax (IPT) is set to rise to 9.5% from 1 November 2015.

IPT, a tax on general insurance premiums, is currently 6%. The last government increase of IPT took effect in January 2011 and was just 1%. Although payable by insurers, it is widely anticipated that the increase in IPT will be passed directly on to policyholders causing insurance premiums to rise. 

From 1 November 2015 individuals could see an increase for personal insurance such as buildings, contents and motor. Businesses are likely to see premiums for policies such as Directors and Officers, Employers Liability, Professional Indemnity and Public Liability.

Most clients won’t have seen a 3.5% increase for a long time but this will soon be hitting everyone’s desks!

If you have any queries relating to this please contact Horner Blakey Insurance Brokers on 020 7929 0108