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UK insurers wrongly taxing Manx policyholders

Wed, 04 May 2011

Isle of Man residents could be paying over the odds for insurance policies.

 

The Island's Office of Fair Trading has discovered that some Manx customers are being charged Insurance Premium Tax.

 

The tax should only be charged where the policyholder or the risk being insured is in the UK.

 

The OFT says some UK insurance companies don't realise the tax shouldn't be added to premiums on the Island.

 

The tax is charged at two rates, 6% and 20%.

 

Anyone taking out insurance is urged to check with their provider whether the quote includes Insurance Premium Tax, and to make sure it is removed if this is the case.

 

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