UK insurance premium tax hikes to 9.5%
Friday, 07 10 2015, Category: Insurance and Reinsurance, Country: United Kingdom
Insurance premium tax is set to hike to 9.5 percent in the UK from 6 percent, George Osborne, the UK Chancellor of the Exchequer, revealed today.
This is expected to increase the Treasury’s finances by £530 million in 2015/2016, £1.46 billion in 2016/2017, increasing to £1.51 billion in 2017/2018.
According to the budget document, the tax rate “will remain lower than that of many other EU Member States.”
“Separately, the government will also introduce VAT provisions to level the playing field for insurers. This will deter insurers from routing costs via offshore associates and ensure UK VAT is accounted for an all repair services on UK insurance contracts,” it said.
Source: Intelligent Insurer