Insurance Premium Tax increase

We are sure you will recall the Chancellor of the Exchequer increased insurance premium tax from 9.5% to 10% from 1st October 2016, this being the second rise in under 12 months.

The previous rise was in November 2015 when it rose from 6% to 9.5%.

It has been announced another rise will take place and will become effective from 1st June 2017 and will increase the rate to 12%.

However bear in mind our EU neighbours pay considerably more than we do. In Germany the rate is 19% and in Finland it is 24%!

One of the reasons, we are told, for these increases is to allow more monies to be invested in flood defence and resilience.