Showcasing the Best of Welsh Business

Insurance Update – Insurance Premium Tax Increases by 2% to 12%

SHARE
,

This article was submitted by Towergate

In his Autumn Statement, The Chancellor, Philip Hammond, unveiled plans to raise insurance premium tax (IPT) to 12% from 1st June 2017, up from the 10% previously announced in the March 2016 budget.

This impacts all Consumer and Commercial Insurance where IPT is payable. The move is disappointing, as it is the latest in a series of increases in IPT in recent years. The move has understandably been met with widespread criticism in the insurance industry, which now appears to be seen as a soft target to grow tax revenues.

The British Insurance Brokers Association (BIBA) said the rise in IPT was “outrageous” and will hit everyone, particularly the “just about managing” people. Huw Evans, director-general of the Association of British Insurers, said the increase was a bitter blow for the hard-pressed. “It will hit consumers and businesses alike”.

Meanwhile Amanda Blanc, Axa UK’s CEO, said the rise was “an unwarranted attack on millions of people simply looking to protect themselves, their families and their key assets”. In his second Budget on 16 March 2016, the then Chancellor of the Exchequer, George Osborne, sought to justify the hike by saying the revenue raised would provide extra funding for flood defences.

This time round, Philip Hammond pointed to the government’s move to reduce compensation for whiplash injuries as a conciliatory measure – a move which the government claims could reduce car insurance premiums by £40. Towergate Insurance Brokers is one of the largest, independently owned, Corporate and SME insurance brokers in the UK. Through our local team of trusted advisors and experts, we offer access to an extensive range of tailormade insurance and risk management programmes.

For more information on this Insurance Premium Tax increase and your insurance requirements, please contact us on 02920 444 555.

SHARE

Posted by:

At Towergate we take our time to understand your unique business and its specific requirements. We deal face-to-face with large corporations, organisations and SME’s with a local, regional, national and international footprint; businesses with complex needs requiring insurance programmes that are rarely a single product.

No matter what the size of your organisation, we will always adopt the same process to safeguard your business. We will sit down and discuss your company’s requirements with whoever we need to; the MD, the owner, the Finance Director; Health & Safety advisors; the company secretary, in-house Risk Manager or a combination of Senior Directors.

We truly believe in providing the personal touch, providing both local and national service. That’s why we have over 80 locations across the UK. Our proposition to you is underpinned by strong relationships with leading insurance partners, who in turn appreciate that we place our clients, at the centre of everything we do.

Having formed a historical presence in Wales, our Welsh offices continue to trade under their own names and form part of the Towergate Group. Our businesses, Antur Insurance Services, CCV Cardiff, Motaquote and Underwood Insurance Brokers have a local knowledge and understanding of welsh business practises, and provide an option for you to transact business in either English or Welsh.

As part of the Towergate Group, these business are backed by the one of the largest corporate and SME insurance brokers in the UK, which not only allows access to the general insurance market and Lloyds, but also to a number of bespoke and unique options, which can provide specific benefits for our clients.

Related Articles