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Insurance Premium Tax Rates

Insurance Premium Tax 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

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