Following the announcement by the Chancellor of the Exchequer in the Autumn Statement that Insurance Premium Tax will rise by 2% to 12% next June, Aviva issues the following statement.
You could say this is a tale of two governments: on the one hand, the government plans to reduce the cost of motor insurance through whiplash compensation reforms which will save motorists around £40 - £50 a year; on the other hand, we’re surprised by the announcement to increase the cost of insurance for a third time, which effectively doubles the amount of tax paid on insurance purchases in less than two years. It is deeply disappointing that those individuals and businesses who do the right thing by taking out insurance face this indirect tax rise.