Free calculator
Insurance Premium Tax (IPT) calculator
Add IPT to a premium, or take it out of a total, at the UK standard or higher rate.
Calculate IPT
Premium before tax
£1,000.00
IPT
£120.00
Total payable
£1,120.00
UK IPT rates
- Standard rate: 12% — most general insurance, including commercial property and liability.
- Higher rate: 20% — mainly travel insurance and some cover sold with goods such as electrical appliances or vehicles.
- Some insurance is exempt, for example long-term life insurance and certain commercial ships and aircraft.
Rates are set by HMRC. Check the current guidance on gov.uk before relying on a figure.
How to remove IPT from a total
Divide the total by 1.12 (standard rate) to get the premium before tax. For example, £1,120 ÷ 1.12 = £1,000, so the IPT is £120.
Check your clients' schedules in minutes
PolicyTools.app reads schedules, wordings and statements of fact and flags what needs attention.
Start 14-day free trial