Increases to the insurance premium tax, announced in the Budget, will push up the cost of before and after the event legal expenses insurance.
The Treasury increased the standard rate of Insurance Premium Tax to 10 per cent in this week’s Budget following an increase from six per cent 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,” she says.
“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.
“Legal expenses cover such as this is supposed to help pay for the costs associated with seeking justice. Now, even that will be less affordable.”
.tmb-mov69x69.jpg?sfvrsn=6e6975ed_1)
