The standard rate of Insurance Premium Tax (IPT) – the tax paid each time an insurance policy is purchased in the UK – is rising from 6% to 9.5% on the 1st November 2015. The higher rate IPT on travel insurance will remain at 20%.
Read the ABI’s (Association of British Insurers) news release and see how this will impact on UK insurance premiums.
IPT was introduced in the UK on the 1st April 1997 at a standard rate of 4%.
On the 1st July 1999 the government increased the standard rate to 5% and later to 6% on the 4th January 2011.