The standard rate of insurance premium tax rises to 12% this June.
The increase of 2% was announced in the Autumn Statement by the Chancellor, Philip Hammond last November.
It follows the previous increase in Insurance Premium Tax in October when it rose from 9.5% to 10%.
Insurance Premium Tax was introduced in 1994 at just 2.5%and has been increasing steadily.
According to media reports the last increase raised £700m for flood defence spending.