What is IPT Tax?

Insurance Premium Tax (IPT) is a tax charged on insurance products sold in the U K. It is paid to the Customs & Excise via the insurance company.

1. Given away by the motor trader as 'part of the deal'.
2. Sold to the customer.

• 5% if the product is given free of charge.
• 17.5% if the product is sold to the customer.

1. Which policies are given to the customer (5% tax).
2. Which policies are sold to the customer (17.5%tax).

Generally invoices that show the price of the vehicle inclusive of warranty qualify for 5% IPT and those that show the warranty separately should be charged at 17.5%. But buyers should check this with their accountant or the Customs & Excise before they buy a warranty.

Collection Process On our website IPT is set at 5% and is charged as part of the warranty price. If you require an invoice for tax at 17.5% please email us and advise the retail price of the warranty and we will send you an invoice for the additional tax due.

Private Buyers: All private buyers of warranties need to pay 5%.

Disclaimer: These notes are provided for guidance only and no liability can be accepted for the advice given. Customers should always check with their local Customs & Excise office the appropriate level of IPT tax for any warranty before it is purchased.