IPT Rates
Insurance Premium Tax was first introduced to the UK in 1994. The rise on 1 October is the 5th increase in the standard rate since its introduction.
- From 1 October 1994, a single rate of 2.5% was charged
- 1 April 1997: increased to 4%
- 1 July 1999: increased to 5%
- 4 January 2011: increased to 6%
- 1 November 2015: increased to 9.5%
- 1 October 2016: increased to 10%
- 1 June 2017 : increased to 12%
Higher rate IPT remains unchanged at 20% and applies to:
- travel insurance
- warranties for some mechanical and electrical goods
The Government exempts the following products from IPT:
- Life insurance
- Mortgage insurance
- Insurance for spacecraft
- Commercial ships and aircraft
- International railway rolling stock
- Lifeboats and lifeboat equipment
- Goods in international transit