UK Budget day 2016 round-up

George Osborne
George Osborne, yesterday
"There's no getting away from the fact that a rise in IPT will result in higher premiums" Matt Oliver,
  • | by Kristian Dando

The dust is settling on today’s budget, so what’s happened?

Typically, there’s quite a lot to take in, so let’s take a look at some of the biggest headlines.

  • There’s a tax on fizzy pop with a sugar tax
  • Insurance premium tax (IPT) has been raised again, to 10%
  • A tax cut for the sharing economy – the first £1,000 that people earn through sites like AirBnB won’t be taxed
  • New 'Lifetime Isas' have been announced, with an April 2017 launch date
  • The growth forecast has been cut for the next five years
  • Corporation tax will be cut to 17% by April 2020
  • There'll be new action to tackle foreign retailers who store goods in Britain and sell them online without paying VAT

Our car insurance expert Matt Oliver had plenty to say about the rise in insurance premium tax.

He opined: "IPT is paid as a percentage of your insurance premium, so an increased rate means groups such as young drivers, or older people with medical insurance, are likely to be hit the hardest. These are the people who already face the highest premiums."

He continued: "There's no getting away from the fact that a rise in IPT will result in higher premiums. However, what people can and should be doing to minimise the impact of this hike is making sure they are regularly shopping around to find the best deal available for their circumstances."

So there you are.

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