Insurance premium tax attack

The Bar Council has raised concerns about rises to the insurance premium tax, announced in the Budget.

The Treasury increased the standard rate of insurance premium tax to 10%, pushing up the cost of before- and after-the-event legal expenses insurance. The rise follows an increase from 6% to 9.5% in November 2015.

Chantal-Aimée Doerries QC, chairman of the Bar, brands the increase “a direct attack on the responsible consumer’s wallet”.

“This is not a tax on the insurers; it is a tax that the policy holder has to pay directly if they want to protect themselves in a claim. This tax increase should not be taken in isolation. With the government increasing the fees people have to pay to use our courts for civil claims, anyone would think they are actively pricing hardworking families and individuals up and down the country out of the justice system.”