The Chancellor of the Exchequer Philip Hammond announced the rise from its current rate of 10% to 12% in his Autumn Statement, from next June. This will be the third rise in IPT since summer 2015, when it was 6%.
Biba said the tax increase was “outrageous”, and meant policyholders have seen an increase in IPT of 66% in only 15 months. ”This further increase to 12% in this regressive tax is outrageous and is a tax on protection which will hit everyone and especially those ‘just about managing’,” Biba said.
”We believe that this increase is contrary to the stated policy of HM Revenue and Customs ’that IPT should make the required contribution to HM Government revenue while minimizing the effect on the take up of insurance’,” the brokers’ association said.