The Treasury's revenue from insurance premium tax (IPT) has jumped following a recent increase in rates, new figures show.
A bulletin published by Her Majesty’s Revenue and Customs latest shows that £730.3m worth of tax revenues were generated by the basic rate of IPT in the three months ending June 2011.
This sum represents a 27% increase on the £574.3m levied via the basic rate in the same period during 2010.
The figure for the second quarter of 2011 is also a big jump compared to the £611m collected from the basic rate of IPT in the first quarter of the current calendar year.
The increase in the sums collected follows the government’s decision to increase the basic rate of IPT from 5% to 6%, which came into force in January.
The bulletin also shows that the total generated by the more restricted, higher rate IPT was £48.4m in the second quarter of 2011 compared to £43.1m in the same period during 2010.
The standard rate increased from 17.5% to 20% at the same time as the rise in the basic rate.