What is Insurance Premium Tax?
IPT is a tax on insurance premiums, including car, home and pet (although it doesn’t apply to life insurance) and is something the majority of us can’t avoid. The latest increase is relatively modest compared to the rise on 1 November 2015 from 6% to 9.5%. This was the largest single increase in IPT since it was introduced in 1994 and seems to have had an impact on insurance premiums over the past year.