Osborne increases insurance premium tax

Chancellor George Osbourne has announced that insurance premium tax is to rise in today's emergency Budget.

He told Parliament that IPT will rise from 5% to 6% while the higher rate of 17.5% will increase to 20%, from January 4, 2011.

The government said it expects to raise £0.5bn per year from 2014/15 as a result.

Osborne’s announcement follows widespread speculation that he would use this year's Budget to announce a big hike in the main rate of the tax. Each point on the main rate of IPT raises approximately £400m per annum.

Click here for reaction: Biba slams IPT hike

Elsewhere, VAT is rising from 17.5% to 20% and capital gains tax is up 10% for higher rate tax payers.

Websites

The 2025 Insurance Times Awards took place on the evening of Wednesday 3rd December in the iconic Great Room of London’s Grosvenor House.

Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
Many congratulations to all the worthy winners and as always, huge thanks to our sponsors for their support and our judges for their expertise.

Topics