Historical Insurance Premium Tax rates
Updated 28 July 2023
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This publication is available at https://www.gov.uk/government/statistics/insurance-premium-tax-ipt-bulletin/historical-insurance-premium-tax-rates--2
1. Overview
This table provides current and historical rates of Insurance Premium Tax (IPT).
Insurance Premium Tax was introduced on 1 October 1994. It applies to most general insurance, where the insured risk is located in the UK. There are exemptions for reinsurance, long term business, international trade, commercial ships and aircraft and other specific exemptions.
There are 2 rates of IPT:
- a standard rate
- a higher rate - for travel insurance, mechanical, or electrical appliances insurance, and some vehical insurance
For further information on IPT and exemptions from IPT go to Notice IPT1 Insurance Premium Tax.
2. Current and historical rates
For detailed information on current IPT rates, go to Insurance Premium Tax rates. N/A indicates that rates are not applicable.
| Date of change | Standard rate (%) | Higher rate (%) |
|---|---|---|
| 01 October 1994 | 2.5 | N/A |
| 01 April 1997 | 4.0 | 17.5 |
| 01 July 1999 | 5.0 | 17.5 |
| 04 January 2011 | 6.0 | 20.0 |
| 01 November 2015 | 9.5 | 20.0 |
| 01 October 2016 | 10.0 | 20.0 |
| 01 June 2017 | 12.0 | 20.0 |