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What is Insurance Premium Tax (IPT) and why is it charged at 17.5%?

April 26, 2017charged Insurance IPT Premium tax

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What is Insurance Premium Tax (IPT) and why is it charged at 17.5%?

1 Answer

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Insurance Premium Tax (IPT) is a levy dictated by the government and applies to all insurance policies. Travel insurance qualifies for 17.5% tax whereas all other insurance products attract a rate of 5%. This tax is not to be confused with Value Added Tax (VAT) which for the current year is now 17.5%. Please note from 1st January 2011 Insurance Premium Tax will rise to 20%.