Motor Vehicles: Insurance Premium Tax
(asked on 29th November 2016) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the likely effect of the rise in insurance premium tax on numbers of uninsured road users.
This question was answered on 5th December 2016
Insurance Premium Tax (IPT) will increase from 10% to 12% from June 2017. IPT is a tax on insurers and it is up to them whether they pass on any increased costs.
The Government has not seen any evidence to suggest that previous changes to IPT have led to increases in the number of uninsured vehicles. The estimated number of uninsured vehicles in the UK has fallen from 2 million in 2005 to 1 million today.