Millions of people and businesses will be hit with increased insurance bills as the Government's increase in Insurance Premium Tax (IPT) takes effect from today.
This latest increase now means the rate of tax paid on most insurance policies has doubled, from 6% in 2015 to 12% now - in a period of only 19 months. The move will affect the 1.9m private medical insurance customers in the UK. The increase has significantly added to the cost of policies as the government now receives £7bn a year in IPT from UK insurance customers. Overall, the current rate of IPT at 12% could now be adding an extra £283 a year to a typical household's annual insurance bill as the rate has now doubled since November 2015, according to figures from the Association of ...
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