PARLIAMENTARY WRITTEN QUESTION
Insurance Premium Tax (30 November 2016)

To ask Mr Chancellor of the Exchequer, what estimate he has made of how much the increase in insurance premium tax announced in the Autumn Statement 2016 will add to the (a) total and (b) average amount paid annually for home insurance in (i) England and (ii) Cumbria.

Asked by:
Tim Farron (Liberal Democrat)

Insurance Premium Tax is a tax on insurers, so any impact on premiums depends on how far and whether they pass on the rate increase.

If they pass on the full rate increase, it is estimated that this will add £7 to the average annual cost of combined buildings and contents insurance, or £3 to the average annual cost of contents only insurance. These figures are based on UK averages.

Answered by:
Jane Ellison (Conservative)
6 December 2016