Budget hits brokers hard
Brokers face a raft of additional costs following the coalition Government's emergency budget.
Chancellor George Osborne has revealed a number of measures that will impact on the sector including increases in VAT, which will rise from 17.5% to 20%, and the standard and higher rate of Insurance Premium Tax (IPT), which will climb from 5% to 6% for standard products and 17.5% to 20% for travel from 4 January 2011.
As well as this, a 10% rise in Capital Gains Tax (GCT) for high rate taxpayers, pushing it up from 18% to 28%, has already come into force.
While the rise in IPT was not as severe
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