What is Insurance Premium Tax?

The UK government imposes insurance premium tax (IPT) on insurance premiums.

There are two different IPT rates:

  • a standard rate applies to most of our insurance products, and also medical insurance
  • a higher rate applies to:
    • travel insurance
    • insurance of electrical or mechanical appliances
    • certain categories of vehicle insurance

No IPT applies to most long-term life and health insurance.

For further information on IPT visit the gov.uk website.