Nick Symes: Is insurance a soft target?on
It is being muted that Tax rises are required to plug the black hole in the NHS funding.
Insurance Premium Tax (IPT) is very much a stealth Tax as outside of the insurance industry, the effects of any increase are not appreciated.
IPT increases not only increases costs for business, but hits consumers with increases in their home, motor, travel and pet insurance amongst others.
We have seen the Tax move from 6% to 12% in a very short period of time and this still remains below Europe, where for example its currently 19% in Germany.
Residential property owners have already been hit hard with the changes in Tax relief rules and will face further increases in cost, if IPT is increased.
At Reich we constantly review market issues to ensure we offer competitive premiums to help contain costs.
So, if awareness of the effects of an increase is low and it produces significant extra revenue for the Treasury, then it follows that it must be a very attractive proposition for the Chancellor, when trying to balance the NHS books.
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