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Generic Tax Name Insurance tax
Tax name in the national language Insurance premium tax (IPT)
Tax name in English Insurance premium tax (IPT)
Member State UK-United Kingdom
Tax in force since 1994/10/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Finance Act 1994 as amended by subsequent Finance Acts and the Financial Services & Markets Act 2000.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

UK.

 
Taxpayers

Insurers receiving premiums, where the risk is located in the UK.

 
Tax object and basis of assessment

General insurance premiums where the risk is located in the UK.

The chargeable amount is the amount the insurer is due to receive under the contract of insurance (including any commission retained by any insurance intermediary).

 
Deductions, Allowances, Credits, Exemptions

Exemptions:

Insurance contracts that are not taxable are contracts:

  • constituting "long term" business (of the kind covered by Directive 79/267 and as described in part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order - SI 2001/544), excluding medical insurances;
  • of reinsurance;
  • relating to motor vehicles for use by handicapped persons (Motability);
  • relating to commercial ships;
  • relating to lifeboats and lifeboat equipment;
  • relating to commercial aircraft;
  • relating to risks situated outside the UK;
  • relating to foreign or international railway rolling stock;
  • relating to the Channel Tunnel;
  • relating to goods in foreign or international transit;
  • relating to credit;
  • relating to exchange losses;
  • relating to the provision of financial facilities.
 
Rate(s) Structure

Standard rate of 6 % (from 4 January 2012).

 

A selective higher rate of 20 % applies to Travel Insurance, Car Rental Insurance and Extended Warranties for Anti Avoidance Purposes (from 4 January 2011).

 
Tax due date

 
Tax collector

At the end of each tax period (three months), the taxable person (the insurer) must make a return of IPT due to a central IPT control unit.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214ga

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 3,022.00 GBP 0.18
2011 2,942.00 GBP 0.18
2010 2,402.00 GBP 0.15
2009 2,259.00 GBP 0.15
2008 2,281.00 GBP 0.15
2007 2,306.00 GBP 0.15
2006 2,314.00 GBP 0.17
2005 2,343.00 GBP 0.18
2004 2,359.00 GBP 0.19
2003 2,294.00 GBP 0.19
2002 2,138.00 GBP 0.19
2001 1,861.00 GBP 0.17
2000 1,707.00 GBP 0.17

Comments