Between October 2015 and June 2017, 50 million policy holders* including charities and young drivers will see a doubling in Insurance Premium Tax (IPT) through three successive increases to a record high of 12%.

Freeze IPT campaign

BIBA has made its submission in relation to this month’s Budget calling to freeze IPT.

Members can join the campaign by writing to their MP using this template or by sharing our video.

Click here for Budget submission >

Click here for BIBA CEO, Steve White’s Insurance Age

Businesses and individuals can use our template letter to write to MPs if they are unhappy with the increases in IPT.

Campaign Background

Government reasoned that this level of taxation remains below the rate in other European countries.
However, the UK is in the highest quartile of EU IPT rates and has one of the highest direct cost of regulation for insurance brokers in the world** with some BIBA members paying more than £1M per year in fees. In some
EU countries that have a higher rate of IPT, regulation is funded through general taxation and is
not comparable to the UK model.
IPT is a tax on prudence and is paid for by customers seeking protection through insurance and
is not recoverable by business. We believe any further increase in IPT is contrary to the stated policy of HM Revenue & Customs “that IPT should make the required contribution to UK Government revenue while minimising the effect on the take up of insurance”***
* ABI
** London Economics
*** [HMRC, IPT01300 – Policy objectives]

 

Case Study - The Impacts of IPT

View case study here.

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BIBA's calls to Action

Each year BIBA campaigns on a number of issues and commits to a series of actions - these calls for action and commitments can be found within our manifesto.

Find out more in the BIBA 2018 Manifesto

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