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Buildings: Insulation

Question for Treasury

UIN 132897, tabled on 30 December 2020

To ask the Chancellor of the Exchequer, what plans he has to waive Insurance Premium Tax on leaseholders' premiums that have increased as a result of the building's non-compliance with EWS1 tests.

Answered on

11 January 2021

Insurance Premium Tax is a tax paid by insurers on all general insurance premiums. Insurance pricing is a decision which is affected by a wide range of factors, and the taxes that insurers pay are just one part of this. It is hard to predict the impact of an exemption on insurance pricing for leaseholders, as this largely depends on how the insurers would react. In addition, any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.

While there are no current plan to introduce an exemption on insurance pricing for leaseholders, all taxes are kept under review and the views expressed to us are carefully considered as part of the annual Budget process.

The Government is working closely with lenders and the Royal Institute of Chartered Surveyors to address problems faced by homeowners caught up in EWS1 processes.

Answered by

Treasury
Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.