Insurance Premium Tax (IPT) is set to rise to 12% in June 2017 as announced in the Autumn Statement, this is a further increase from  10% which came into effect from 1st October 2016 up from a previous 9.5%. This will be the third rise in two years.

Announcing the extra 2% increase to IPT, the chancellor Philip Hammond said that IPT rates are among the lowest in Europe and the extra revenue is needed to pay for infrastructure plans by the government.

Group Life Insurance (Death In Service) and Group Income Protection are currently exempt from IPT so the change does not effect these products.