Insurance Premium Tax to rise from November

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The Chancellor George Osborne has just announced a rise in Insurance Premium Tax (IPT) from 6% to 9.5% from November.

This tax will apply to the following lines of insurance: Mobile Insurance, Minibus Insurance, Short Term Minibus Insurance, Taxi Insurance, Care Home Insurance, Fleet Insurance, Home Insurance.

The British Insurance Brokers Association estimate this increase will effect 19.6 million motor insurance policies, 20 million Home insurance polices

This increase will also effect any mid-term adjustments made on the policy as insurance premium tax is also charged then.

IPT was first introduced in Oct 1994 and since then has increased regularly. It was last increased in 2011 when it went from 5% to 6%.