Insurance Premium Tax

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Insurance Premium Tax (IPT) is a tax implemented by several countries which applies the majority of insurance products.

IPT is calculated based on the gross premium. For example, if the gross premium is £1000 and the IPT rate is 10%, the IPT amount will be £100 and the total amount charged to the policyholder will be £1100.

As a result of IPT being levied, insurance products are generally outside the scope of Value Added Tax (VAT).

United Kingdom

The current rate of IPT in the UK is 12%.

Channel Islands

Although many UK insurance policies cover the Channel Islands, they do not attract IPT.

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