Insurance Premium Tax (IPT) is a tax on general insurance premiums.
The standard rate is 12% and unfortunately it is compulsory for us to add to your quote (it works in the same way as VAT). Rest assured that when you get your quote on the Laka.co.uk page, we've already factored it in 🙌
A bit of history on IPT 📚 :
Over the years IPT has increased. It was set in 1993 at 2.3%. By 2011 it was 6%. In 2015 it rose to 9.5% and by 2016 to 10%. In June 2018 it finally rose to 12% (source: Telegraph)
Even though it has risen over the years, Finland has the highest IPT at 24%, so we aren't quite at that rate yet 😉