What is insurance premium tax?
Insurance Premium Tax (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. Unfortunately, it can't be claimed back. It is 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.
For more information about paying IPT, click here. For a discussion with one of our experts, please call 0345 251 4000.