UK insurance premium tax gets a reprieve
It was announced last month that the U.K. Insurance Premium Tax would increase to 9.5% from the current 6% for coverage purchased on or after November 1st by the Chancellor of the Exchequer George Osborne as part of his summer budget. Though the insurer pays the tax directly to the government, it would show up as higher premiums for the buyer in the long run.
Following the announcement, there was such an uproar that HM Revenue and Customs (HMRC) then temporarily relaxed the filing requirements for insurers. Even though the dust has settled since the surprise statement, but some experts in the industry are still concerned about the impact that the potential rise could have on the market.
We continue to monitor the situation for our global risk management clients and will advise accordingly of any further changes.
About the Author
Tina Hinckley is an Area Senior Vice President at Gallagher WGA with over 30 years of insurance industry experience. She works with multinational manufacturing, life science, and high technology companies to design and maintain multinational programs, and provide well-rounded risk management solutions.
617.646.0216 | Tina_Hinckley@AJG.com