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%.

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”***

** London Economics
*** [HMRC, IPT01300 – Policy objectives]

Write to your MP about IPT

BIBA members can use our template to write to their MP

Member Pro Forma letter on IPT

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

Customer pro forma letter on IPT

Case Study - The Impacts of IPT

View case study here.

Find Insurance

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

Find Insurance

Whatever type of insurance you need to find, BIBA can connect you with a broker who can help. Please use the search below or call our Find a Broker Service on 0370 950 1790.

*Members of the Armed Forces have particular insurance needs. BIBA members making a commitment under the Covenant and which help meet these needs can be found here