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VATINS8105 | VAT and Insurance Premium Tax (IPT): What is IPT?: General

From HM Revenue & Customs · VAT Insurance

IPT is a tax on premiums received under taxable insurance contracts.

There are 2 rates:

  • standard rate of 12%

  • higher rate of 20%

All types of insurance risk located in the UK are taxable unless they’re specifically exempted under Schedule 7A of Finance Act 1994.