Call us now on: 01494 450 450

Insurance Premium Tax rises again - where will it end?

The impact for businesses - Thursday, Mar 17, 2016

Get a Quick quote

Want to find our more?
Would you like us to call you?
Fill in the form below and we'll get back to you.

J Bennett & Son Business Insurance Premium Tax

Insurance Premium Tax commonly referred to as IPT is a tax by the Government on general insurance premiums, including business, property, motor and home insurance.


The rise in the March 2016 budget comes hot on the heels of the last one in November when it rose from 6% to 9.5%. Some suggest, including the AA, that it is a tax on motorists, however the impact is more strongly felt by British businesses


Steve White CEO of BIBA (British Insurance Brokers Association) said, "We are extremely disappointed in this rise in IPT and this will mean insurance will become more expensive for the public as a result. Those hit by this stealth tax will include the 20.1 million households with contents insurance; 19.6 million with motor insurance and 17 million with buildings insurance."


What we know:

1 This is Insurance Tax, not VAT so it cannot be passed on, or recovered by businesses.

2 Insurance Companies cannot absorb the cost and we all have to pay.

3 The Government stated it is to go towards those affected by flooding, despite the Government’s lack of support of UK flood defences

4. It’s a classic stealth tax. The Revenue collected over £3billion from the UK population in the 2013 – 14 tax year when the rate was 6%.

5. It only went up 4 months ago from 6% to 9.5%. The cost of implementation is enormous why was it not increased to 10% in November?

6. The Revenue will collect an estimated 5 billion in 2016 – 17


Where will it end, are we seeing a future trend?  With the average rates across Europe already higher (Germany 16%, France 18% and Finland 24%) you can see why there is speculation that the rate is heading towards 20%


For more views on this click here.

Get a Quick quote

Want to find our more?
Would you like us to call you?
Fill in the form below and we'll get back to you.

What people say about us...

We need partners we can rely on to grow successfully and J Bennett & Son have been there for us since we started. With their help, claims have been handled efficiently and without disruption to our business or reputation.
Andrew Walker
Portaltech Reply
read more testimonials...
J Bennett and Son acquires Mathews Comfort insurance
J Bennett and Son acquires Oxford based Insurance Brokers, Mathews Comfort

We are delighted to announce the acquisition of the Mathews Comfort’s general insurance arm.

read more
Aviva Community Fund Project J Bennett and Son
J Bennett & Son supports local sports club in funding bid

  Vote for Thame Cricket Club and Day Centre in the AVIVA community fund   Thame Town Cricket Club and Thame Tennis and Bowls Club are looking for local support in a public vote for their AVIVA community fund application.

read more
Is your retrieve vehicle correctly insured?
Is your retrieve vehicle correctly insured?

As a balloonist, you can’t be successful without a good retrieve.

read more

Not sure about some technical jargon or insurance gobbledygook?

click here!

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how customers use our website. Our site won't work without them. By continuing to use our website you accept our use of cookies. Find out more about cookies.