Insurance Premium Tax: Charities

HM Treasury written question – answered on 18th January 2017.

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Photo of Fiona Bruce Fiona Bruce Chair, International Development Sub-Committee on the Work of the Independent Commission for Aid Impact, Chair, International Development Sub-Committee on the Work of the Independent Commission for Aid Impact

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the increase in insurance premium tax announced in the Autumn Statement 2016 on the charity sector.

Photo of Fiona Bruce Fiona Bruce Chair, International Development Sub-Committee on the Work of the Independent Commission for Aid Impact, Chair, International Development Sub-Committee on the Work of the Independent Commission for Aid Impact

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the increase in insurance premium tax announced in the Autumn Statement 2016 on charities which use volunteers.

Photo of Fiona Bruce Fiona Bruce Chair, International Development Sub-Committee on the Work of the Independent Commission for Aid Impact, Chair, International Development Sub-Committee on the Work of the Independent Commission for Aid Impact

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the increase in insurance premium tax announced in the Autumn Statement 2016 on charities which preserve heritage assets.

Photo of Jane Ellison Jane Ellison The Financial Secretary to the Treasury

Insurance Premium Tax (IPT) is a tax on all general insurance paid by insurers, and it is therefore up to insurers to decide whether to pass on any tax paid.

Charities are a vital part of our society and the Government continues to support them and their donors, including through tax reliefs worth over £5 billion in 2015-16. The Government has also made up to £42 million per annum available for the Listed Places of Worship Grant Scheme and at Budget 2016, the Government announced a further £20 million to the First World War Centenary Cathedrals Repairs Fund.

While all tax policy is kept under review, it would be challenging to implement an exemption for insurance purchased by any specific group.

Treasury Ministers and officials meet with a wide range of companies and organisations, including charities and their representative bodies, to discuss relevant issues.

Details of ministerial meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

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