§ Mr. PendryTo ask the Chancellor of the Exchequer what representations he has received about the inability of travel agents to value-shift between holiday and insurance products. [19661]
§ Dawn PrimaroloI have received a number of such representations but all the evidence suggests that value shifting between holiday and insurance is widespread in the travel industry, as reflected by respective profit margins applied to these products.
508W
§ Mr. PendryTo ask the Chancellor of the Exchequer what is the latest estimate of the tax gain resulting from the higher insurance premium tax rate; and what are the reasons for the change in his previous estimate of £70 million. [19663]
§ Dawn PrimaroloThe latest estimate of the overall tax gain from applying the higher rate of insurance premium tax to travel insurance is £60 million. This revision from the earlier estimate of £70 million took place prior to the introduction of this measure and reflected a reassessment of the share of the UK travel insurance market enjoyed by travel agents and tour operators.
§ Mr. PendryTo ask the Chancellor of the Exchequer what evidence he has received showing that the lower rate of insurance premium tax is being used as a marketing promotion by those insurance retailers who compete with travel agents levied at the higher rate. [19665]
§ Dawn PrimaroloI have received a number of examples of advertising literature on travel insurance, some of which mention the higher rate of insurance premium tax charged by travel agents.