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IPT hike branded a tax on the prudent
THE higher rate of insurance premium tax (IPT) — which applies to travel insurance and extended warranties — is set to rise to 20 per cent from 17.5 per cent.
In addition to this, the standard rate — which applies to most general insurance — will rise to six per cent from five per cent.
The government faced a backlash last night as critics branded the hike a tax on the prudent.
The average car insurance policy will now see £18 a year go to the government on a premium of £300.