Increase in insurance premium tax
You may be aware the Government is increasing Insurance Premium Tax to 6% from the 4th January 2011.
This is a 1% increase and it is the first increase since 2003.
Though tax increases are widely unwelcome, the UK has one of the lowest Insurance Premium Taxes in the European Union. As an example, we list the tax rates currently applicable in various other European countries:-
- France - 9%-30%
- Germany - 19%
- Italy - 12.5%-21.25%
- Netherlands - 7.5%
- Portugal - 5%-9%
- Spain - 6%
Whilst none of us likes the idea of a tax increase, at least we are paying less than most other European countries, even at the new 6% rate.
If you wish to receive more information on the Insurance Premium Tax please do not hesitate to contact ourselves.