Greg Mulholland – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Greg Mulholland on 2016-03-21.

To ask Mr Chancellor of the Exchequer, with reference to paragraph 1.205 of the Budget 2016, what assessment he has made of the potential effect on insurance policy take-up of an increase in the standard rate of insurance premium tax.

Harriett Baldwin

As part of the costing process for all taxes, we looked at any behavioural changes.

Where insurers pass on the rate increase, the increase may have a small impact on individuals and households purchasing insurance which is not exempt from IPT. This is not likely to lead to any significant change in take-up of insurance.