'Insurance Premium Tax'

the word tax placed on a calculatorWhat is insurance premium tax?

Insurance Premium Tax or IPT is a mandatory UK government tax charged on most insurance policies including professional indemnity insurance.

Currently set at 12%, it is not the same as VAT and it can't be claimed back unfortunately. It's an indirect tax accounted for by insurance companies on most classes of insurance and recovered as a levy against each policy sold. It accounts for approximately £ 6 billion in tax receipts annually.