Chancellor George Osbourne announced today that Premium Tax (IPT) will go up from January 4th making retail and commercial insurances including Professional Indemnity Insurance more expensive in 2011. 

Addressing Parliament today, he said IPT will rise from 5% to 6%.  The British Insurance Brokers Association had hoped it could persuade the government not to increase the 5% rate, however, there may be some comfort in that the rise is only 1%.

BIBA and the IIB have both expressed satisfaction following the publication in today's Budget and in a joint statement, the two trade bodies said they had achieved a significant reduction in scope, compared to the original text in the Pre-Budget Report, following a successful joint lobbying campaign.

Some predictions had stated that the Chancellor may have double the standard rate of IPT to 10% however this has fortunately not come to fruition.

22 June 2010