Emergency budget could raise insurance tax in line with rest of EU

The Treasury is investigating how the level of British insurance premium tax (IPT) compares with other European countries, fuelling concerns that the government will raise the general rate in 22 June’s emergency Budget.

Insurance Times has learnt that Treasury officials have asked accountants TMF to supply information on IPT rates across the EU.

VAT and IPT services managing director for TMF, Richard Asquith, said that the firm’s analysis showed that the UK’s general IPT rate of 5% is the lowest in the EU, behind Ireland and Luxemburg.

Industry bodies urged the government not to raise the general IPT rate.

Read the full story in this week's issue of Insurance Times, out Thursday, or click here to read it first online.