Information from BusinessLink.gov.uk
Insurance premium tax is a tax on insurance premiums paid by some insurance companies, insurance brokers and intermediaries selling taxable insurance.
All types of insurance risks located in the UK are taxable unless they are specifically exempted. Exemptions from this tax include:
- reinsurance "long-term" insurance, including life insurance and permanent health insurance, but excluding - medical insurance - commercial aircraft insurance - commercial ships and lifeboats insurance - export finance - insurance on commercial goods in international transit - insurance for risks outside the UK - insurance on international railway rolling stock
Most insurance companies simply quote you the total amount of the premium plus the IPT and do not separate the two. However at Simply Business we want you to know how your insurance is calculated, which is why we show the insurance amount.
