Insurance Premium Tax increased to 12% on 1 June 2017, up from 10%, and having been as low as 6% in October 2015. The Charities Tax Group (CTG) has argued that this has a disproportionate impact on charities (especially those with a large portfolio of operational buildings) and has serious concerns about rumours that IPT may eventually be increased to 20%, in line with VAT.
The CTG reports that the last Government ruled out any exemption for charities on the basis that it would not be practical (and that insurers do not have to pass on the cost) and noted that it is an important revenue raiser. The CTG asks affected charities to complete its IPT survey so that we can demonstrate the impact of the increase.