Over the past 15 months, policyholders have
already seen an increase of 66% in the Insurance Premium Tax (IPT) they pay –
this further increase to 12% in this regressive tax is outrageous and is a tax
on protection which will hit everyone and especially those ‘just about
managing’. We believe that this increase is contrary to the stated policy
of HM Revenue and Customs “that IPT should make the required contribution to HM
Government revenue while minimising the effect on the take up of
insurance”. This increase comes at a time when both motor and home
insurance premiums are rising and our fear is that many of those who most need
it will avoid taking up insurance and be unable to afford the protection they
need.