Insurance premium tax pushing up cost of pet insurance
The standard rate of IPT in the UK is now the sixth highest in Europe.
The cost of pet insurance has risen by nearly 20 per cent in recent months, according to figures published by the Association of British Insurers (ABI).
The figures show that the standard rate of insurance premium tax (IPT) increased from six per cent to 12 per cent in less than 18 months, and independent experts expect it will continue to rise.
The added cost of the IPT increases means that the average pet insurance policy has risen by 18.58 per cent. The ABI is now calling on chancellor Phillip Hammond to end repeated increases.
James Dalton, director of general insurance policy at the ABI said: “Taxing insurance premiums means punishing people who do the responsible thing. No-one would think it reasonable to fine people for clearing up after their pets, securing their homes or driving carefully.
“It is no more acceptable to penalise people who sensibly invest in insurance cover for themselves, their families and their belongings. Repeatedly putting up Insurance Premium Tax impacts hardest on the poorest and it’s time for the Chancellor to end this raid on the responsible and commit to no further increases this Parliament.”
The standard rate of IPT in the UK is now the sixth highest in Europe, behind Germany, Greece, Italy, the Netherlands and Finland. A recent report by the Social Market Foundation, however, found that 50 per cent of the country has never even heard of it.
FIVP has shared a survey, inviting those working in independent practice to share their views on the CMA's proposed remedies.
