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Q: What is Insurance Premium Tax?
A:
Insurance premium tax (IPT) is a tax paid by insurance companies, such as Co-op Insurance, and insurance brokers that sell taxable insurance within the United Kingdom.
There are two different insurance premium tax rates:
- a standard rate of 12 per cent is levied on most of the Co-op Insurance's products
- a higher rate of 20 per cent is levied on travel insurance, insurance of electrical or mechanical appliances, and some vehicle insurance
- Most long-term insurance such as life and permanent health insurance (but not medical insurance) is exempt from IPT
Further information on IPT can be found on the gov.uk website.
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