Insurance Premium Tax (IPT) is a tax on general insurance premiums.
The standard rate is 12% and unfortunately, we have to charge it as part of your share - it’s literally the law (it works in a similar way to VAT). Rest assured that when you get your quote we've already factored it in.
A bit of history on IPT
Over the years IPT has increased. It was set in 1993 at 2.3%. By 2011 it was 6%. In 2015 it rose to 9.5% and by 2016 to 10%. In June 2018 it finally rose to 12% (source: Telegraph)
Even though it has risen over the years, Finland has the highest IPT at 24%, so be glad we aren't quite there yet!
As always, if you need help, contact us.