PwC is optimistic for the UK insurance industry
PricewaterhouseCoopers say there are a number of "positive" outcomes for the UK insurance industry in today's emergency Budget.
Colin Graham, insurance tax partner at PwC said: "Despite the widely expected rises in VAT and insurance premium tax (IPT), today’s budget has delivered a number of positive commitments for the UK insurance industry.
The government appears to have listened to the industry’s repeated calls for an exemption system for foreign branches, with its commitment today to reform the rules next year.
Alongside the reduction in corporation tax, these announcements are positive for the competitive position of the UK insurance industry."
David Bearman, financial services tax partner at Ernst & Young said: "The increase for higher rate IPT brings the tax in line with the new VAT rate of 20%.
"While 2.5% higher from 4 January 2011, this tax is limited and specific, travel insurance being the main area impacted.
"The standard rate increased to 6% will still be one of the lower IPT rates across Europe. The VAT increase will be a much more significant issue for the financial services industry."
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