Written question asked by Peter Fry (Conservative), in the House of Commons. It was due for an answer on Tuesday, 21 January 1997. It was answered by Phillip Oppenheim (Conservative) on Tuesday, 21 January 1997 on behalf of the Treasury.

Treasury

Question: What estimate he has made of the revenue forecast from the imposition of a rate of insurance premium tax of 17.5 per cent. on holiday insurance sold by travel agents; and what account it takes of switching of the purchase of holiday insurance from travel agents to insurance brokers in order to incur the lower rate of insurance premium tax. - (Holding answer 20 January 1997).

Answer: Sir Peter Fry: To ask the Chancellor of the Exchequer what estimate he has made of the revenue forecast from the imposition of a rate of insurance premium tax of 17.5 per cent. on holiday insurance sold by travel agents; and what account it takes of switching of the purchase of holiday insurance from travel agents to insurance brokers in order to incur the lower rate of insurance premium tax. [11451] Mr. Oppenheim: [holding answer 20 January 1997]: Around £70 million of the estimated £235 million revenue yield in 1998-99--published in the 1997-98 "Financial Statement and Budget Report"--is from charging the higher rate of insurance premium tax on travel insurance; the remaining £165 million is from charging the higher rate of insurance premium tax on mechanical breakdown insurance of various types and insurance sold with TV and car hire. The travel insurance costing incorporates assumptions about changes in behaviour in response to the increased rate of IPT and this includes the option to buy travel insurance direct from insurers or through insurance brokers.

Secondary information