LEGAL

What is Insurance Premium Tax (IPT)?

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 June 2017, the standard rate is 12% (an increase on the previous rate of 10%).

Why do you have to pay IPT?

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.