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Tax rise

24th November 2016

The Chancellor of the Exchequer, in his autumn statement, announced that from June 2017 insurance premium tax ("IPT")  will rise from 10% to 12%.

IPT rose from 5% to 6%  in January 2011, then to 9.5% from November 2015, then to 10% from October 2016.  There is no guarantee that these increases will not continue.

Insurance represents a very important source of protection against the uncertainties of life generally and the vagaries of the legal system in particular.   The fact that insurance premiums paid by members of the public have to cover not merely the cost of heavy regulatory burdens on insurance companies and insurance brokers, but also increasing amounts of tax, is deeply unfortunate.