What is Insurance Premium Tax (IPT)?
As the name suggests it's a tax on insurance premiums. IPT applies to all insurance providers that provide general insurance products like car and home cover.
Unlike other industry sectors, insurance isn't subject to VAT, so the IPT was introduced in its place. IPT is only 10% (to 31st May 2017) or 12% (from 1st June 2017) for our Motor and Home insurance, but is 20% for our Travel and Winter Sports cover.