§ Mr. MacleanTo ask the Chancellor of the Exchequer if he will estimate the annual average levy on a private healthcare insurance scheme as a result of the extension of insurance premium tax to such schemes in the 1997 Budget. [70678]
§ Dawn PrimaroloInsurance Premium Tax has applied to private medical insurance since the tax was introduced in 1994. The current rate is 4 per cent. In 1997, the legislation was amended to apply IPT again to a few insurance schemes that had been repackaged to benefit from the exemption for long-term policies. This protected £70 million tax revenue potentially at risk and removed a distortion of competition.