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 assessment has been made by his Department of the commercial impact on travel agents of the proposed imposition of a higher rate of insurance premium tax on holiday insurance sold by travel agents than on similar insurance sold by insurance brokers and agents. - (Holding answer 20 January 1997).

Answer: Sir Peter Fry: To ask the Chancellor of the Exchequer what assessment has been made by his Department of the commercial impact on travel agents of the proposed imposition of a higher rate of insurance premium tax on holiday insurance sold by travel agents than on similar insurance sold by insurance brokers and agents. [11679] Mr. Oppenheim: [holding answer 20 January 1997]: Current pricing differentials and marketing practices in this sector, coupled with the fact that insurance provided free by travel agents will not be subject to the higher rate of insurance premium tax, suggest that the proposed tax differential in favour of other insurance agents and brokers is unlikely to have a significant effect on purchasing behaviour.

Secondary information