[2][3] The Insurance Premium Tax was announced by Kenneth Clarke in the November 1993 budget[3] and introduced with the Finance Act 1994 which received Royal Assent on 3 May 1994.
The Chancellor George Osborne stated in the 2016 spring budget that the standard rate of IPT would increase from 9.5% to 10% from 1 October 2016.
[6] In the 2016 autumn statement the new Chancellor Philip Hammond stated that the standard rate would increase from 10% to 12% from 1 June 2017.
[3][8] From 1 April 1997, two rates were charged: All types of insurance risk located in the UK are taxable unless they are specifically exempted.
Businesses must inform HM Revenue & Customs within 30 days of forming the intention of receiving taxable premiums as the insurer.