The rate of insurance premium tax is set by the government in the UK. There are two rates of IPT.

In 2021 the lower rate is 12% and the higher rate is 20%. When it was first introduced the rate was only 2.4%. There has been a gradual increase in the insurance premium tax rate over a number of years.

Private Medical Insurance is subject to the lower rate of insurance premium tax.

Some insurance policies are exempt from IPT. Life insurance is one of those policies.

Quotations are often provided inclusive of the rate of IPT.

How private health insurance works

How private health insurance works

As the uptake in UK private health insurance is increasing, you may wonder how health insurance works? If you are new to health insurance, let us help you understand how it works in practical terms. It is important to remember that health insurance (also known as PMI) does not replace the NHS. Health insurance works alongside the NHS and the premium you pay will dictate the benefits and cover you receive. If you want to be able to have access to private treatment for everything, then you will need to buy a fully comprehensive policy. You may even need to…

Important information about Insurance Premium Tax

Important information about Insurance Premium Tax

At SMP Healthcare Ltd we’re committed to keeping our clients new and existing up to date about changes that affect Private Medical Insurance policies. That’s why we want to let you know about a change to Insurance Premium Tax. What does it mean to those who either a hold a policy, or are considering putting a policy in place. First things first…what is Insurance Premium Tax? *Insurance Premium Tax (IPT) is a tax on general insurance premiums and therefore applies to Private Medical Insurance policies. There are two rates of IPT: – A current standard rate of 10% – A…