DMBM540310 - Debt and return pursuit: Insurance Premium Tax: What is Insurance Premium Tax

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Insurance Premium Tax (IPT) is a tax on insurance premiums (payments made for insurance cover), and applies to most types of general insurance such as motor, accident or sickness, buildings and contents, private medical, and travel insurance.

IPT is under the collection and management of the Commissioners of Revenue and Customs (section 5(1) (b) of the Commissioners for Revenue and Customs Act 2005).

It is rare, outside Lloyd’s, for insurance underwriting business to be carried on by anyone other than a limited company, friendly society or trade union; but a taxable intermediary or insured person may be a partnership or individual.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Further information on Insurance Premium Tax (IPT) is in V2-01 Insurance Premium Tax.