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Buildings: Insulation

Question for Treasury

UIN 135977, tabled on 11 January 2021

To ask the Chancellor of the Exchequer, if he will make it his policy to exempt people affected by dangerous cladding from Insurance Premium Tax.

Answered on

14 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 those affected by unsafe cladding, 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 is no current plan to introduce an exemption on insurance pricing for those affected by unsafe cladding, all taxes are kept under review and the views expressed to us are carefully considered as part of the annual Budget process.

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.