The UK insurance Sector Paid Taxes In 2021 Totaling $17.2 Billion
The UK insurance Sector Paid Taxes In 2021 Totaling $17.2 Billion
According to the Association of British Insurers (ABI), the UK insurance sector paid $17.2 billion in taxes between 2021 and 2022.
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According to the group, this amount, which accounts for 2.1% of the government’s tax receipts, is a “record,” 6.9% greater than in 2019-2020. It stated that PwC conducted the survey on behalf of the ABI.
The overall contribution consists of £12.4 billion in taxes collected through insurance premium tax (IPT), employee income tax, and national insurance payments, as well as £4.8 billion in taxes, paid, including employment tax, corporation tax, and irrecoverable VAT. According to the research, the insurance premium tax rate increased from 6% in 2014 to 12% in 2020.
Based on survey responses from 29 ABI members, the study used data on UK tax payments in accounting periods ending 31 March 2021 and 31 March 2022. The participating companies represent 77% of the total gross written premiums (GWP) written by ABI members in 2021-22, and 84.4% of the total UK workforce in the UK industry, so are representative of the sector.
The UK Insurance Sector Paid Taxes In 2021 Totaling $17.2 Billion
Mervyn Skeet, director of general insurance policy at the ABI, said: “With these latest record figures, there is no doubt that the sector is key in not only securing the futures of everyone in the UK, but also the economy as well.”
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He added: “Given the turbulence in the market over the past year these results prove that, when faced with challenging conditions, the sectors’ tax and wider economic contribution remains significant. There are both challenges and opportunities in the year ahead. We look forward to seeing the benefits of the Solvency II reform and continue to ask for the introduction of key global tax reforms to include the latest international guidance and be consistent with other jurisdictions.”
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