This tax was first introduced in 1994, Insurance Premium Tax (IPT) is a tax on general insurance premiums, including home insurance, car insurance and travel insurance.
There are two rate bands, the standard rate of 12% and a higher rate of 20% which applies to travel insurance, appliance insurance and some car insurance.
Questions you may ask:
- Is IPT charged on all insurance products?
- What IPT rate is chargeable on car insurance?
- Which insurance products attract higher rate IPT?
How does it work?
You will need to insure your vehicles for your company and your premium will be liable to this tax. Your insurer will add this tax onto your fleet premiums.
IPT increased to 12% as of 1 June, 2017, leading to increased premiums on a wide range of insurance products, including car insurance.
|Insurance Premium Tax
|Standard rate - From 1st June 2017