Budget 2016: IPT rise seems small but could have a big impact

Budget 2016: IPT rise could have a big impact

Adrian Smith, Global Head of IPT, KPMG, comments on the Chancellor's decision to raise the rate of Insurance Premium Tax by 0.5%.

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Adrian Smith, Global Head of IPT, KPMG, comments on the decision to raise the rate of Insurance Premium Tax by 0.5%, saying:

“With the recent floods fresh in the mind, there is an obvious political rationale for the Chancellor ring fencing the money raised by increasing IPT. The rise by 0.5% to 10% appears small, but the rate of IPT has risen 66% since last summer. This will be worrying for insurers but could also mean individuals and businesses may fail to take out or renew essential, and often, compulsory insurances.”

Ends

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About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Budget 2016

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