It’s no more popular than when it was announced last November, but it is finally here. Chancellor Philip Hammond’s IPT hike, announced in last year’s Autumn Statement, increased the Insurance Premium Tax from 10-12%.
It’s the third increase of the tax in two years. Commentators have labelled it as a both a ‘tax on the prudent’ and as a ‘spiteful’ attack on the insurance industry. Hammond announced in his Spring budget that there were no further increases planned for IPT.
Whatever happens in the future, we need to acclimatise to this latest change in IPT, which has now come into effect.
The industry will have spent the last few months adapting their operating systems in order to apply the IPT change. Contracts have also had to be amended while ultimately, brokers have been the bearers of bad news to their clients, the customers.
Despite our frustrations with the IPT’s changes, we here at Corin are working hard alongside our brokers to minimise these disruptions for everyone.
Ultimately, the latest rate increase will be assimilated as smoothly as the last few. But with any luck, it’ll be the last IPT rise for some time.