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Chancellor takes insurers by surprise with tax hike

9 July 2015

In surprise move in a budget aimed at a ‘high wage low tax’ economy, the Chancellor has announced an increase in IPT to 9.5%. The change which is due to be introduced by November risks undermining the work undertaken between industry and government to reduce the cost of insurance. Steve White of BIBA has described the move as “disappointing” and “a stealth tax”.

On a more encouraging note, the Chancellor also announced a review of Claims Management Regulation. Despite changes in 2013, CMCs remain a major source of claims and yet are loosely regulated when compared with other parts of the insurance and claims industry

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