IPT increase again

paddyandstumpy

It's just been announced in the Autumn statement that IPT (insurance premium tax) will increase again to 12% in June 2017.

It was as recent as October 2015 it was only 6%.

100% increase in less than 2 years!!

csgohan4

Sigh...... Better get my insurance stuff sorted before then

Quentin

It's ok.


Our motor insurance will be going down £40 on average next year according to the chancellor! (When they bring in the law to stop the compensation culture over whiplash)

mattk_180

Quentin wrote: »

It's ok.


Our motor insurance will be going down £40 on average next year according to the chancellor! (When they bring in the law to stop the compensation culture over whiplash)

Let's hope insurers don't find a way to keep them up like they seemed to do when gender equality came in.


These increases won't have too much of an affect to those paying a couple of hundred pounds or less (although that's not to say I agree with it or they don't have a right to be peeved), but I bet large companies paying millions each year in insurance won't be best pleased either.

agrinnall

They might as well scrap IPT and just charge VAT on insurance products and get it over with, it's heading that way anyway.

mattk_180

agrinnall wrote: »

They might as well scrap IPT and just charge VAT on insurance products and get it over with, it's heading that way anyway.

Funny you should say that, when it went up from 6% to 9.5% I said it would reach the same level as VAT within 5 years (so by Oct 2020).


Looks like I'm well on course with that prediction.....

dacouch

mattk_180 wrote: »

Funny you should say that, when it went up from 6% to 9.5% I said it would reach the same level as VAT within 5 years (so by Oct 2020).


Looks like I'm well on course with that prediction.....

I read a prediction about ten + years ago that IPT would end up being increased dramitcally as it tends to be circa 15% in many European Countries and the Government would want to "Harmonise" with Europe.

It won't ever be made into VAT as vat registered companies could then offset it against their vat

OnanTheBarbarian

Quentin wrote: »

It's ok.


Our motor insurance will be going down £40 on average next year according to the chancellor! (When they bring in the law to stop the compensation culture over whiplash)

Genuine question, do you seriosuly believe that ws going to happen (before today's statement)?

rs65

agrinnall wrote: »

They might as well scrap IPT and just charge VAT on insurance products and get it over with, it's heading that way anyway.

Its been rumoured to increase to VAT levels since 1997 when the higher rate (17.5%) was introduced.

rs65

OnanTheBarbarian wrote: »

Genuine question, do you seriosuly believe that ws going to happen (before today's statement)?

Has anyone ever believed that.

Kim_13

Getting silly now, considering that vehicle insurance is a legal requirement. A setup similar to the stamp duty one would make things fairer, seeing as many rely on a car to get to work.