Insurance Premium Tax rates
Updated 4 August 2017
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This publication is available at https://www.gov.uk/government/publications/rates-and-allowances-insurance-premium-tax/insurance-premium-tax-rates
Insurance Premium Tax (IPT) is a tax on general insurance premiums.
There are 2 rates:
- a standard rate
- a higher rate - for travel insurance, mechanical or electrical appliances insurance and some vehicle insurance
There are a number of exemptions from IPT, including:
- most long-term insurance
- re-insurance
- insurance for commercial ships and aircraft
- insurance for commercial goods in international transit
- premiums for risks located outside the UK - these may be liable to similar taxes imposed by other countries
Details of all exemptions are given in Notice IPT1 Insurance Premium Tax.
| Rates | From 1 June 2017 | From 1 October 2016 to 31 May 2017 | From 1 November 2015 to 30 September 2016 | From 4 January 2011 to 31 October 2015 | Up to 3 January 2011 |
|---|---|---|---|---|---|
| Standard rate | 12% | 10% | 9.5% | 6% | 5% |
| Higher rate | 20% | 20% | 20% | 20% | 17.5% |
Read IPT guide for insurers.