Insurance Premium Tax (IPT) is a tax charged on all general insurance premiums, including commercial and landlord insurance. The rate is set by HMRC.
As of 1st October 2016, the standard rate is 10% (an increase on the previous rate of 9.5%).
Everyone who buys insurance needs to pay tax on it. However, as this is charged at the same percentage for all insurers, the amount of tax you pay won’t affect the relative cost of your insurance premium. We highlight this because we think it’s important to be upfront about the tax you pay on your insurance premium.Back to top