IPT is imposed on certain insurance premiums where the risk is located in the UK.
|Standard rate (%)||Higher rate (%)|
|From 1 July 1999||5||17.5|
22 July Emergency Budget
With effect from 4 January 2011 the standard rate of Insurance Premium Tax will increase to 6 per cent and the higher rate will increase to 20 per cent.
The higher rate was extended to all sales of travel insurance from 1 August 1998.
On and after the date that Finance Bill 2008, overseas insurers with no business establishment in the UK who write
taxable risks located in the UK will no longer be required to appoint a tax representative. They will , however, still need to
register for IPT , but will be able to choose whether or not to appoint an agent to act for them in the UK. This agent
will not be jointly and severally liable for the tax due by the insurer.