We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
MSE News: Summer Budget 2015: Insurance premium tax to rise
Options
Former_MSE_Paloma
Posts: 531 Forumite
Insurance premium tax will rise from 6% to 9.5% from November, the Chancellor has announced in the Summer Budget...
Read the full story:
Summer Budget 2015: Insurance premium tax to rise
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Summer Budget 2015: Insurance premium tax to rise
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
0
Comments
-
Of course it will be pushed on to the customers, insurance companies are as crooked as banks.
So that is 3.5% on car insurance, house insurance, contents insurance, life insurance and company insurances.
Time to cut back on some of my insurance policies thenBlessed are the cracked for they are the ones that let in the light
C.R.A.P R.O.L.L.Z. Member #35 Butterfly Brain + OH - Foraging Fixers
Not Buying it 2015!0 -
Disgusting regressive stealth tax.Changing the world, one sarcastic comment at a time.0
-
Butterfly_Brain wrote: »Of course it will be pushed on to the customers, insurance companies are as crooked as banks.
So that is 3.5% on car insurance, house insurance, contents insurance, life insurance and company insurances.
Time to cut back on some of my insurance policies then
What a ridiculous comment, that's like blaming retailers for the rate of VAT. Of course it will be passed on to customers, the tax is aimed at customers, insurers have no say in the matter.
This is yet another example of a stealth tax that will hit those that pay the highest premiums the hardest; in the case of car insurance young drivers and those in the inner cities, which just happen to be the poorest areas of the country.
Good old Dave and his cronies putting the boot into the working classes again....All matter is merely energy condensed to a slow vibration, we are all one consciousness experiencing itself subjectively, there is no such thing as death, life is only a dream, and we are the imagination of ourselves.0 -
As an Insurance Broker and a Consumer this rise is certainly unwanted as it hits me on both sides of the fence. There are no winners here except for the Government.
As a Consumer, if your premium is £300 now it will be £309.91 after November this year (assuming no other factors affect the price). That's nearly £10 extra that the customer would have to fork out. The standard customer will no doubt have several policies (car, home, etc.) but we also deal with a lot of business customers who have these standard polices PLUS several commercial policies like public liability or let property insurance. Most of these people will be paying an extra £100+ just because of this tax increase.
As a Broker (and the same for Insurance Companies) there is no option but to request this extra money because it is a TAX. There is a considerable amount of administration required to change systems over to cater for the increase and then collecting this extra money from customer will cost more in card charges - none of which is recoverable. The biggest cost though is the loss of customers who (like the OP) may believe this price hike is down to us and take their business elsewhere or reduce their cover to keep costs down. The only obvious way a broker/insurer can recover these losses is to increase their own fees/prices but this would be dangerous as this increase on top of the tax increase would obviously make the whole situation above worse!0 -
Butterfly_Brain wrote: »Of course it will be pushed on to the customers, insurance companies are as crooked as banks.
So that is 3.5% on car insurance, house insurance, contents insurance, life insurance and company insurances.
Time to cut back on some of my insurance policies then
That's exactly what I thought when seeing this budget - it's nothing more than a stealth tax as the increase in IPT will surely be passed onto customers!
I just read a good break down of the affect of the IPT rise here:
bobatoo.co.uk/blog/budget-2015-chancellor-delivers-summer-budget-sucker-punch-to-uk-insurance-policyholders-and-motorists/
Also worth reading BiBA's response to it, who really put the 'stealth tax' into perspective: biba.org.uk/MediaCenterContentDetails.aspx?ContentID=39030 -
The Insurance Premium Tax going from 6% to 9.5% isn't a 3.5% increase - its actually a 58.3% increase in real terms - nice work if you can get it - and the Chancellor has !!0
-
Glad to see no increase on insurance travel....phew really be able to have a cheap school summer holiday now. Was starting to worry about the cost, thanks George.0
-
The chancellor just put up insurance prices by 3.3% by increasing IPT from 6% to 9.5% in Budget 2015. This includes Private Medical Insurance (PMI) and will drive more people out of the already shrinking PMI market and send them running back to the NHS. The Chancellor should remove IPT on PMI, which would save money for the NHS by encouraging people to be treated privately. The removal of IPT on PMI would save more in NHS costs than it would cost in terms of lost IPT revenue.0
-
I missed this in the budget, was it well hidden? Although not welcome, we do have to pay down the huge deficit somehow. This budget was all about how we can do this without the great unwashed public noticing too much and getting upset. Throw in some give aways to appease the left ('living' wage) and Gideon pulls it off.0
-
Quality response. Why would expect an insurer to absorb it?Butterfly_Brain wrote: »Of course it will be pushed on to the customers, insurance companies are as crooked as banks.
Insurance companies don't want this tax - it just makes their products more expensive.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards