We are the voice of insurance and long-term savings | Contact us

Summer Budget ABI response increase Insurance Premium Tax and corportation tax

Huw Evans, Director General of the Association of British Insurers (ABI), responds to the increase in Insurance Premium Tax and cuts to corporation tax announced in the 2015 Summer Budget.

On the increase in Insurance Premium Tax, Huw Evans said:

"Insurance Premium Tax is a tax on people and businesses at the point at which they buy a general insurance product. So it’s very disappointing to see a more than 50% tax increase being imposed on consumers, especially when the insurance industry and Government has worked so hard in recent years to bring down the cost of essential insurance."

The ABI calculates that the new rate of IPT will add £9.48 to the average annual household insurance policy (buildings and contents combined) and £12.25 to the average annual comprehensive motor policy.

On Corporation Tax, Huw Evans said:

"Further cuts to corporation tax are good news. They will continue to make the UK a highly competitive destination for insurers and savings providers and enhance London's position as the insurance capital of the world."


Last updated 01/07/2016