Will insurance premiums go up due to VAT increase? When do you expect premiums to go up?
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althomson
1 year ago
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
To my knowledge, insurance premiums are not vatable, as they are already subject to Insurance Premium Tax.
I'm not aware of any insurer increasing premiums due to the rise in VAT
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I'm not aware of any insurer increasing premiums due to the rise in VAT
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Insurance Premium tax has itself risen, in January, from 5% to 6% of the premiums, all of which will rise accordingly.
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Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
IPT of 6% applies to most insurance policies with the exception of certain categories that are charged at a higher rate of 20%
the higher rate of 20% applies to insurances sold with a car purchase (but not car insurance), warranty products for domestic appliances and travel cover
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the higher rate of 20% applies to insurances sold with a car purchase (but not car insurance), warranty products for domestic appliances and travel cover
