Insurance Premium Tax: Difference between revisions
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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. | 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 == | == United Kingdom == | ||
Latest revision as of 08:02, 21 April 2025
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.