In the fourth and final part of our upcoming Insurance Premium Tax feature Adrian Smith, KPMG analyst reveals that businesses might find a way out of paying higher IPT.
Smith said British businesses could look overseas for help in reducing the IPT tax bill. He said that businesses could choose to insure with an overseas insurer who “do not always correctly account for UK IPT”.
He warned: “UK-based insurers could struggle to compete with these overseas insurers who, by not correctly charging this tax, are able to offer lower premiums. However businesses must be careful as these providers may not necessarily have the same level of regulation as UK insurers and, therefore, policyholders may not benefit from the same level of protection.”