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ABI gets Snippy on insurance tax

The Association of British Insurers has unveiled a new campaign to push for reductions in insurance premium tax (IPT).   

The association says the campaign, fronted by a scissors-like mascot named Snippy, was launched after research showed a “widespread lack of awareness” of the tax despite it affecting 84% of homeowners.  

The findings show that 67% of insurance customers say they have little to no knowledge of the tax, and about half are unaware of its impact on insurance costs.   

IPT applies to most general insurance policies, with the current standard rate at 12%, more than double what it was in 2015. This year, the tax is expected to bring in more than £8 billion ($15.53 billion).   

The association’s General Insurance Policy Director Mervyn Skeet has called on the Government to cut the “hidden in plain sight” tax, saying it “penalises people and businesses for being responsible”.  

“This tax hits the poorest hardest because they typically spend more on insurance, such as home and motor cover, as a proportion of their income,” Mr Skeet said. 

“There has never been a better time for the government to show its support to the millions of homeowners and businesses who do the right thing by buying insurance. We should cut IPT now.” 

The UK Government will present its budget this week.