Insurance premium tax
Insurance premium tax is charged on top of most insurance products and is a tax that is relatively common across the European Union.
Insurance premium tax (IPT) is generally levied at the standard rate of five per cent, a rate that applies to all general insurance such as homes and cars.
Certain forms of insurance, such as travel insurance or mechanical breakdown insurance incur a higher rate of insurance premium tax of 17.5 per cent.
Life assurance and other long term insurance currently remains exempt from insurance premium tax.