A tax consultancy has warned that the government could be looking towards transactional taxes such as Insurance Premium Tax to generate extra revenue for the country's treasury.
"Insurers must understand both IPT (Insurance Premium Tax) tax is going to be increasingly on government"s radar," warns Mike Stalley, FiscalReps's Chief Executive. "As a result, you must ensure tax on both side of the Atlantic gets properly calculated and accounted for or the organisation will end up being not fully compliant."
Roger Nightingale, a prominent commentator on the global economy, warned: "I believe that the fall-out from current economic development will be dramatic for the insurance market - with government seeing the insurance market as a likely source of revenue."
Confirming the fact that IPT is getting greater attention in the UK in the light of the IPT Tribunal"s recent ruling on HMRC vs. Homeserve, Robert Hartley - Senior Associate at Lovells - presented an analysis of the implications of the case, in particular drawing out the implications for those remunerated on a fee basis who may find themselves suddenly liable. "This ruling is going to affect sections of the industry - profoundly," he said.
