Motorcycle Insurance Glossary - insurance premium tax
Insurance Premium Tax (IPT) is a tax on general insurance premiums (this includes motorcycle insurance polices) within the UK.
Insurance premium tax is levied at two rates:
- a standard rate of 5%
- a higher rate of 17.5 per cent for travel insurance and some insurance for vehicles and domestic/electrical appliances
Most long-term insurance is exempted from the tax, as is reinsurance, insurance for commercial ships and aircraft and insurance for commercial goods in international transit. Premiums for risks located outside the UK are also exempt, but they may be liable to similar taxes imposed by other countries.
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