Insurance premium tax
With effect from 4th January 2011 the standard rate of Insurance Premium Tax has increased from 5% to 6%. For certain types of policy, the most common of which is travel, the rate has risen in line with VAT from 17.5% to 20%.
Insurance Premium Tax was introduced in 1994 at a rate of 2.5%. It was increased in 1997 to 4% and in 1999 to 5%. The 2011 increase is the first alteration since that date.