Budget Resolution 34: Insurance Premium Tax (Standard Rate) — 14 Mar 2017 at 18:52
George Osborne MP, Tatton voted to increase the standard rate of insurance premium tax from 10 to 12 per cent.
The majority of MPs voted to increase the standard rate of insurance premium tax from 10 to 12 per cent.
The motion supported by the majority of MPs taking part in this vote was:
- (1) In section 51(2)(b) of the Finance Act 1994 (standard rate of insurance premium tax), for “10 per cent” substitute “12 per cent”.
- (2) Subject to paragraph (3), the amendment made by paragraph (1) has effect in relation to a premium falling to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1 June 2017.
- (3) That amendment does not have effect in relation to a premium falling within paragraph (4), unless the premium falls to be regarded for the purposes of Part 3 of the Finance Act 1994 as received under a taxable insurance contract by an insurer on or after 1 June 2018.
- (4) A premium falls within this paragraph if it is in respect of a risk for which the period of cover begins before 1 June 2017.
- (5) In the application of sections 66A and 66B of the Finance Act 1994 (anti-forestalling provision) in relation to the increase in insurance premium tax made by this Resolution, the announcement relating to that increase is to be taken to have been made on 8 March 2017 (and “the change date” is to be taken to be 1 June 2017).
- (6) This Resolution is to be read with section 66C of the Finance Act 1994 (premiums relating to more than one period of cover).
- And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
This vote relates to the standard rate which applies to most insurance contracts, and not the higher rate which applies to travel insurance, mechanical/electrical appliances insurance and some vehicle insurance. There are some exemptions to the tax.
-  Spring Budget 2017: documents
-  Insurance Premium Tax page on Gov.UK
-  HM Revenue & Customs Notice IPT1: Insurance Premium Tax
Votes by party, red entries are votes against the majority for that party.
What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.
What is Turnout? This is measured against the total membership of the party at the time of the vote.
|Party||Majority (Aye)||Minority (No)||Both||Turnout|
|Con||308 (+2 tell)||0||0||93.9%|
|Lab||0||204 (+2 tell)||0||89.6%|