Insurers urged to take note of IPT rise
FiscalReps, the independent consultancy firm, has warned that the increase in Insurance Premium Tax (IPT) should not be ignored.
The rise in IPT, announced in yesterday’s austerity Budget, sees the basic rate move from 5% to 6% and the higher rate from 17.5% to 20%, a significant measure according to FiscalReps’ founder, Mike Stalley.
Stalley goes on to say that overlooking the change in IPT could lead the sector to make costly compliance mistakes.
He continued, stating that the location of the insured risk is the key to calculating IPT, the location of the insurer and the main policyholder is (regarding this tax) irrelevant.
Therefore, non-UK insurers covering risks here will be affected by the changes announced in the Budget.
Insurers are liable for payment of IPT, and any fines that must be paid due to an error are therefore paid by the insurer.
The ABI has expressed similar displeasure at the rise, with Director General Kerrie Kelly describing the move as regrettable, and stating that it could have unintended consequences by leading people to avoid taking out adequate insurance coverage.
Category: Insurance News
Visited 1472 times, 2 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.