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.

Newsletter sign up


In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: