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Please note that calls to numbers pre-fixed 0844 are not free*

N.B. calls to numbers pre-fixed 0844 are not free*

Summer Budget - IPT and CMCs

Posted 08 July 2015 by Donna Scully

Chancellor George Osborne announced ‘major review’ of the regulation of CMCs in the unveiling of the summer budget, pledging to cap the amount CMCs charge to their customers.

IFB director Ben Fletcher said “There are many genuine claims management companies which provide a service for honest consumers and this must be preserved. However there is equally a need to recognise that corrupt CMCs are a significant factor in organised insurance fraud and work needs to be done to improve regulation.”

He added “a major review of the regulation of this industry to improve transparency and to implement robust processes which will enable the detection of corrupt practices is absolutely welcomed.”

In response to the announcement of an increase in IPT from the current 6% to 9.5% BIBA Chief Executive Steve White said “we are extremely disappointed in this rise in insurance premium tax and will mean insurance will become more expensive for the public as a result, including the 19.6 million households with motor insurance.

The government has been working with the industry to reduce the cost of insurance for consumers and it therefore seems counterintuitive to be taking measures which will add to the cost, effectively taxing protection.”

The hike in IPT comes in to effect from 1st November and could create uncertainty and unnecessary cost for businesses but we are yet to see the detailed measured proposal. It is the second biggest revenue raising measure announced in this year’s budget.

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Directors: John Carpenter, Donna Scully

Carpenters is authorised and regulated by the Solicitors Regulation Authority under number 625845 www.sra.org.uk
and is authorised and regulated by the Financial Conduct Authority under number 755996 www.fca.org.uk

*Please note that calls to numbers pre-fixed 0844 are not free - for BT residential customers the cost is no more than 7p per minute plus a 15.97p set-up fee (@June 2015). The cost for non-BT phone lines may be different. Please check the BT price list for charges to other 0844 numbers as charges vary depending on the three digits following 0844. Calls to 0800, 0808 and 0500 numbers are free if made from a UK landline. Non-BT customers and mobile phone users should contact their service providers for information about the cost of calls.