Insurance Premium Tax: Charities

HM Treasury written question – answered on 13th March 2017.

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Photo of Dan Jarvis Dan Jarvis Labour, Barnsley Central

To ask Mr Chancellor of the Exchequer, whether he has considered setting a special rate of insurance premium tax for charitable organisations.

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

Insurance Premium Tax (IPT) is a tax on the insurer, and there is no obligation to pass the increase on to the customer.

All tax policy is kept under review, however, it would be challenging to implement an exemption for insurance purchased by any specific group. Any such legislation would be very difficult for insurers to implement since this would require them to differentiate between customers who were buying the same type of insurance products.

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.

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