Insurance Premium Tax (IPT) is a government tax added to the price of some insurance policies. Your insurer collects it from you as part of the premium, then pays it to the government. The rate can vary depending on the type of insurance.
What you should know
- Where you’ll see it: It’s usually included in the total price you pay for your policy.
- Who collects it: The insurer adds IPT and passes it on to the government.
- How much it is: The rate can change and can be different across insurance types.
If it depends
If you live in the Isle of Man or the Channel Islands: IPT rules may be different, so it may not be charged in the same way. Check the price breakdown you’re given when you buy.