Welcome to the 2009 Budget Tax Facts

This document is prepared for guidance only. We recommend that you contact us for advice before acting on any information contained in the document and we cannot accept responsibility for any action taken without such advice.

Income tax and capital gains tax rates
	2009/10	2008/09
Starting rate (savings income only)*	£2,440	£2,320
Basic rate band	37,400	34,800
Higher rate on taxable income over	37,400	34,800
* The starting rate does not apply to general income; it only applies to savings income if general income less allowances is less than £2,440. This starting rate band is included in the basic rate band of £37,400.
Rates differ for:    General Savings Dividend Starting N/A 10% 10% Basic 20% 20% 10% Higher 40% 40% 32.5%
Allocation of rate bands
Taxable income uses up the rate bands in the following order: * 'general income' (employment, business profits, rent) * 'savings income' (mainly interest) * 'dividends' (mainly distributions from companies)
Extension of basic rate band
A taxpayer who pays personal (including stakeholder) pension policy premiums, or gives cash to charity under the Gift Aid scheme, increases the basic rate band by the grossed up equivalent of the payment. This means that more tax is paid at the basic rate and less is paid at the top rate.
Filing of return and payment
2009/10 personal tax return: due to be filed by 31 January 2011 (online) or 31 October 2010 (paper). * penalty for late return: £100 (or the tax due, if less) 2009/10 tax payable: * tax on employment income paid under PAYE each month * basic rate liability on savings and dividends usually settled by receiving the income net of tax paid or credited * balance of tax due under self assessment (SA): - payments on account due 31 January 2010 and 31 July 2010, based on the 2008/09 SA income tax and Class 4 NIC - balance, plus any CGT, due 31 January 2011, with the first payment on account for 2010/11 Missing any payment dates leads to interest; missing the balancing payment date by 28 days will lead to a 5% surcharge and a further 5% surcharge if not paid by following 31 July.
Main personal allowances
	2009/10	2008/09
Personal income tax allowance	£6,475	£6,035
CGT annual exemption	10,100	9,600
Blind person's allowance	1,890	1,800
Age allowances
	2009/10	2008/09
Personal allowance (PA)
* Age 65 - 74 in the tax year	£9,490	£9,030
* Age 75 and over in the tax year	9,640	9,180
* Minimum*	6,475	6,035
Married couple's allowance (MCA)** (also for civil partners)
* Age up to 74	N/A	6,535
* Age 75 and over	6,965	6,625
* Minimum*	2,670	2,540
Income Limit*	22,900	21,800
* If the taxpayer's total income exceeds the income limit (extended for gift aid and pension contributions), one-half of that excess is deducted from the allowances - first from the PA until the minimum is reached, then from the MCA until the minimum is reached. ** Amount depends on age of older spouse; allowed at 10%; nil if born after 5 April 1935; reduced if marriage took place during the tax year.
Main personal reliefs
Rent-a-room exemption for letting out part of the taxpayer's only or main residence: gross income of £4,250pa. Gift aid: on a cash gift to charity, the charity can reclaim 22/78 (28.2%) of the donation from HMR&C if the donor makes a declaration. The donor increases the basic rate band by the gross gift (i.e. donation x 100/80). The market value of gifts of land or quoted shares can be deducted from taxable income for full tax relief, and the charity pays no tax on the gift received. Also "Give as you earn" scheme allows charitable gifts to be made from pre-tax pay, so PAYE is reduced.

Tax rates and payment

Employment income is charged to both income tax (as 'general' income) and to Class 1 National Insurance Contributions. Tax and NIC are normally paid by the employer through the PAYE system, but an employee whose tax is not fully paid should complete a tax return and settle the liability as described in Personal Taxation. If the tax underpaid is up to £2,000 and the 2009/10 tax return is submitted by 31 October 2010, or e-filed by 30 December 2010, the underpayment can be settled through PAYE for 2011/12 rather than being collected on 31 January 2011.

Class 1 NIC rates 2009/10

Employers and employees both contribute at rates dependent on the level of earnings during a weekly, monthly or annual earnings period.

week month year LEL: lower earnings limit £95 £412 £4,940 PT: primary threshold 110 476 5,715 UAP: upper accrual point 770 3,337 40,040 UEL: upper earnings limit 844 3,656 43,875

No NIC are payable by employee or employer on earnings up to the PT. Earnings between the LEL and the PT must be reported by the employer, and the employee receives credit towards the State Pension, but no NIC are payable. Rates of NIC on earnings above the PT depend on whether the employee is within the State Second Pension (S2P), or whether the employer has 'contracted out' using a final salary (FS) or money purchase (MP) scheme.

Employee Employer   In Out In Out FS Out MP PT - UAP 11.0 % 9.4% 12.8% 9.1% 11.4% UAP - UEL 11.0 % 11.0% 12.8% 12.8% 12.8% Above UEL 1.0 % 1.0% 12.8% 12.8% 12.8%

Contracting-out employers receive a special rebate on earnings between the LEL and the PT. A person with more than one employment can defer the payment of some employee NIC until after the end of the tax year, when the total amount payable can be checked and limited so the full 11% rate is only applied to income between the PT and the UEL.

Employee benefits

Employee benefits are usually valued at a 'cash equivalent' and are then charged to income tax on the employee and Class 1A NIC (at 12.8%) on the employer. The cash equivalent is generally based on the cost to the employer of providing the benefit, but the following are charged according to a statutory formula.

Cars provided by the employer: a percentage of the original list price of the car, depending on the CO2 emissions rating of the car.

2009/10 10% of list price to 120g/km 15% of list price 121g/km-139g/km 1% addition 140,145,150 etc. max 35% benefit over 234g/km

For diesel cars add 3% (min. is 13%, max. still 35%). There is no discount for the level of business mileage or the age of the car, but deduct employee contributions for private use.

Fuel provided by the employer for private use in a company car is charged without reduction for contributions unless all private fuel is paid for by the employee, in which case there is no benefit. To calculate the taxable amount the percentage used to calculate car benefit is applied to a standard figure of £16,900.

Vans provided by the employer for an employee's private use are charged at a flat rate of £3,000. If fuel is provided as well, an additional £500 is charged. If private use of a van is restricted to home-to-work travel, there is no tax charge.

Loans of money of over £5,000 are charged on the excess of the official rate (4.75% since 1.3.09, subject to change) over any interest actually paid by the employee to the employer.

Use of assets is charged at 20% of the original cost of the assets to the employer, or the value when first made available to the employee, less any amount paid by the employee for private use.

Main exempt benefits

Many employee benefits are not charged to tax. A full list cannot be given here, but some of the principal ones are: * providing one mobile phone, even with private use * subsidised meals available to all employees in a staff restaurant or canteen * the provision of 'green transport' such as works buses or the use of a bicycle for commuting

Exempt mileage allowances: employee's own car

First 10,000 miles Extra miles Each passenger 40p 25p 5p

Exempt fuel-only allowances: company car

Engine cc Petrol engine Diesel engine LPG 1400cc or less 10p 11p 7p 1401cc - 2000cc 12p 11p 9p over 2000cc 17p 14p 12p

Other exempt payments to or for employees

* mileage allowances of up to 24p per mile for business use of the employee's motorcycle or 20p per mile for a pedal cycle * contributions to registered pension schemes * payments of up to £5 a night when staying away for 'personal incidental expenses' (£10 if abroad)

Employee share schemes

Generally, employees are charged to income tax on the value of shares that they are given or issued by their employer, less any amount paid for the shares. This applies to 'free shares' and to shares acquired under option schemes. NIC is also charged if the company is quoted, or the shares can be easily sold. If the employer operates one of the following 'HMR&C-approved' schemes, the tax charge may be eliminated, reduced or deferred.

Share incentive plans (SIP) * 'free shares' to £3,000pa * 'partnership shares' (employee buys with pre-tax salary) max £1,500pa, employer can 'match' with up to 2 more for each one purchased * shares left in the scheme for at least 5 years: no income tax or CGT on the value when they leave the scheme

Enterprise management incentives - qualifying trading companies (fewer than 250 employees) can grant options to buy up to £120,000 worth of shares to selected employees.

Company share option plans - share options to buy up to £30,000 of shares can be granted to employees.

Approved savings-related share option plans - employees contribute to a Save As You Earn plan (max. £250 a month) to save the money needed to exercise options. With approved option schemes, the employee pays CGT on sale of the shares rather than income tax/NIC on exercising the options. The CGT charge is likely to be smaller and later than the IT/NIC.

The main tax incentives for investment are: * income tax deduction for amounts invested - the rebate is either at a fixed 20%/30% or at the taxpayer's marginal rate of tax (given by deduction from income - DED'N in tables below) * tax exemption on the income from the source (EXINC) * tax exemption on gains arising (EXGAIN) * the ability to defer capital gains on other disposals until the new investment is sold (DEFER)

The main types of tax-advantaged investments are:

ISA (individual savings account)

DED'N EXINC EXGAIN DEFER No Yes Yes No

Investment can be made in 'cash ISA' (up to £3,600pa) and/or 'stocks and shares ISA' (£7,200pa less amount invested in cash). No restriction on withdrawal. No relief for losses. The investment limit rises on 6 October 2009 to £10,200 for people aged 50 or over, and will rise to the same level for younger investors in 2010/11.

VCT (venture capital trust)

DED'N EXINC EXGAIN DEFER 30% Yes Yes Not since 5/4/04

Deduction relief is for subscription for new share capital in approved VCT - a quoted company which invests in small, unquoted trading companies. The income tax relief becomes permanent if the shares are held for 5 years. Income and gains (if any) are exempt immediately even for second-hand shares. No relief for losses. Maximum investment £200,000 pa.

EIS (enterprise investment scheme)

DED'N EXINC EXGAIN DEFER 20% No Yes Yes

Relief is for subscription for new share capital in small, unquoted trading companies. The income tax relief becomes permanent, and gains are exempt, if the shares are held for 3 years. Further relief available for losses on disposal. Maximum investment £500,000 per tax year for DED'N; only limit for DEFER is size of qualifying company.

PPP (personal/stakeholder pension plan)

DED'N EXINC EXGAIN DEFER Marginal Yes Yes No

The details of the contract with the pension company may vary, but they must be within the basic framework set down by tax law. PPP premiums are paid net of basic rate tax. The policyholder pays 80% and the Revenue pay 20%. Higher rate relief is given where due by increasing the basic rate band in the tax computation, resulting in reduced self-assessment payments or in increased PAYE code for employees. While the money is held within the pension fund, it is exempt from taxes on income and gains, so it grows faster than funds held directly. When the policyholder takes the benefits under the scheme, 25% of the accumulated fund can be drawn as a tax-free lump sum, and the balance is used to provide an income (which is taxable). The income can be a purchased annuity for life, or an "alternatively secured pension" in which the fund is still identified and produces the income which is paid to the pensioner. Tax relief is due on an individual's gross contributions up to £3,600 (£2,880 net), or 100% of current year employed or self-employed earnings if higher, up to £245,000 (in 2009/10). When a policyholder takes benefits, the capital value on which benefits are drawn (e.g. as a 25% tax-free lump sum plus an annuity based on the other 75% of the fund) are measured against a "lifetime allowance" (£1.75m in 2009/10). If the lifetime allowance is exceeded, there is a clawback charge on the excess. Employers can contribute up to £245,000 to employees' pension funds, less any contributions made by the individual. The employer can enjoy tax relief on the cost under the normal rules for trading expenses. Large extra contributions by high earners after 22 April 2009 may be subject to a restriction of relief. If a policyholder dies before taking any benefit under the scheme, the fund usually passes to dependants free of IHT. If death is during payment of benefits and a capital fund is payable to dependants, it is likely to be subject to IHT.

The chargeable gains of the tax year, after deduction of capital losses, available reliefs and the annual exemption, are taxed at 18%. CGT is self-assessed, reported and paid in conjunction with income tax and the details are given on the Personal Taxation page. When a chargeable asset is given away, the doner is treated as receiving the full market value and is liable for CGT accordingly.

Entrepreneurs' Relief

Disposals of the following assets may qualify for ER if they have been owned for at least a year: * a business or an interest in a business * shares in a company for which the individual works and holds 5% of the share capital * related assets used in the business/company and sold at the same time as the interest in the business/shares An individual will qualify for relief on all disposals until the lifetime total of such gains reaches £1m. The first £1m of gains will be reduced by 4/9, giving an effective CGT rate of 10% instead of 18%.

Other major CGT reliefs

A number of types of asset are exempt from CGT, including chattels (tangible movable property) which are bought and sold for less than £6,000; cars; and the taxpayer's only or main residence. A taxpayer with more than one residence can choose which is to be exempt, but it is not possible to apply the exemption to an investment property which is rented out.

Gifts to charity are not charged to CGT, and gifts of quoted shares and land also enjoy an income tax relief (see Personal Taxation).

Deferral of gains is allowed on some types of reinvestment, such as subscription for new EIS shares (see Investment Reliefs).

There is no CGT on transfers between spouses or registered civil partners, whether gifts or for consideration. The transferee takes over the transferor's CGT cost.

There is no CGT on gains accrued to the date of a taxpayer's death. Instead, the value of the estate may be subject to IHT.

Trusts are liable to income tax on income and CGT on gains for each tax year. The trustees are responsible for filing self-assessment tax returns by the normal date (31 January 2011 for 2009/10) and paying the tax on the normal dates (payments on account of income tax on 31 January and 31 July 2010, and the balance of income tax and the whole of the CGT on 31 January 2011). The tax rates applicable to trusts are:

Life interest Discretionary Rate on dividend income 10% 32.5% Rate on other income 20% 40% Rate on capital gains 18% 18% CGT annual exemption £5,050 £5,050

Discretionary trusts for vulnerable beneficiaries (such as disabled people) can pay tax at the lower rates if an election is made. Discretionary trusts pay tax at the lower rates on income up to £1,000. Beneficiaries of life interest trusts are treated as entitled to the income of the trustees, and pay tax on it in the year it arises to the trust, with a credit for tax paid by the trustees. Beneficiaries of discretionary trusts pay tax on income distributed to them by the trustees, which is treated as paid with a tax credit of 40/60 of the cash received. If the tax credit on either type of trust exceeds the beneficiary's tax liability, the excess can normally be reclaimed by the beneficiary (unless credits on dividends in life interest trust). The CGT annual exemption is divided between trusts established by the same settlor since 1978, to a minimum of £1,010. Trusts are also liable to pay inheritance tax in a variety of circumstances, and trustees should make sure that they have appropriate professional advice to enable them to fulfil all their legal and fiscal responsibilities. In particular, the IHT treatment of trusts is complex and has changed significantly in recent years. Trustees should make sure they are aware of the effect on them.

Tax Credits are the main way in which the tax system provides support to people with children and workers on low incomes. Tax Credits are paid to those who claim them, and are not an adjustment in the tax computation. Working Tax Credit (WTC) is paid to employed and self-employed people on low incomes. The full entitlement is given for an income of only £6,420, and it is tapered away as a couple's joint income increases above that. There is an additional element which will cover 80% of qualifying childcare costs of up to £300pw for two children, and a couple entitled to this can enjoy substantial credit even on combined incomes over £30,000. Child Tax Credit (CTC) is paid to the main carer for children up to 16 years old, or up to 18 in full-time education. Entitlement is built up of elements for each child, and for "the family". The child elements are tapered away as income increases. The family element of £545 will be paid in full to couples with a combined income of up to £50,000; after that, it will be tapered away to nothing by the time the joint income reaches £58,000, or £66,000 in the year a child is born. CTC is separate from and additional to Child Benefit, which is a flat rate payment usually made to the mother in respect of each child. Child Benefit is not income-related and is automatically paid without a claim being necessary. Claims are made provisionally for the coming year based on a previous year's income (2008/09 for 2009/10 claims), and may be revised up or down at the end of the year if income has changed significantly. However increases in income will be disregarded if they are up to £25,000. The Tax Credits system is very complicated, and this can only serve as a brief summary. The HM Revenue & Customs website (www.hmrc.gov.uk) has a ready-reckoner facility which will estimate the amount of either tax credit due, and also has forms and details of how to apply.

For employees' NIC, see Employee Taxation page. Self-employed people pay: * weekly Class 2 contribution of £2.40pw, unless they claim exception for small earnings (below £5,075). Usually paid monthly by direct debit * Class 4 NIC at 8% of taxable profits between £5,715 and £43,875. Profits over £43,875 will be charged at 1%. This is assessed and paid with the self-assessment income tax on profits Class 3 voluntary NIC may be paid at £12.05 per week by someone who is not in work but who wishes to maintain state pension rights.

Annual limits

Someone who is both employed and self-employed will pay Class 1, Class 2 and Class 4 NIC. It is possible to apply for deferment of Class 4 so that the Class 1 paid on earnings can be taken into account. Class 4 will then be charged through self-assessment at only 1%, and the overall balance of liability will be settled at a later date.

Rates

The nil rate band for cumulative chargeable transfers in the last seven years is £325,000 for gifts from 6 April 2009 onwards. If one of a married couple/civil partnership did not use the full band on death, the unused proportion increases the nil band of the other spouse/partner if they die on or after 9 October 2007. Gifts above that are charged at the following rates:

Chargeable legacies on death 40% Gifts within 7 years of death 40%, with reductions if over 3 years before death Lifetime chargeable gifts 20% if the donee pays the tax, 25% if the donor pays

Payment

Inheritance Tax (IHT) on a deceased's estate and on gifts within 7 years of death is generally payable at the end of six months after the month of death, but tax on the estate must be paid before probate is granted, and this may necessitate earlier settlement. IHT on chargeable lifetime gifts is payable on the later of six months after the month of transfer or 30 April in the next tax year.

Major reliefs

The following transfers are exempt from IHT: * the first £3,000 gifted in a tax year (unused limit may be carried forward for one year) * small gifts of up to £250 per recipient in a year * normal expenditure out of income * gifts between husband and wife, unless the donor is domiciled in the UK and the recipient is not * gifts between individuals more than 7 years before the donor's death (as long as the donor survives, the gift is left out of account as 'potentially exempt') * gifts in consideration of marriage - £5,000 from a parent, £2,500 from a grandparent or a party to the marriage, £1,000 from others Most business and agricultural property enjoys a 100% relief once it has been owned for two years, although some types of property are relieved only at 50%, and it is important to meet all the conditions.

Pre-owned assets tax

An income tax charge applies to certain arrangements which remove assets from an IHT-chargeable estate but allow the former owner to use or enjoy them.

Businesses in general pay PAYE in respect of their employees, and VAT on turnover if they are required to be registered for that tax. Unincorporated businesses (sole traders and partnerships) pay income tax and NIC on their profits; companies pay corporation tax on all their profits including capital gains.

Capital allowances

Neither capital expenditure nor depreciation is generally allowed as an expense. Instead, many classes of capital expenditure receive a capital allowance, which may spread the cost over several years, and which is not related to the accounting depreciation. The major categories of capital allowance in 2009/10 are:

Plant and machinery * approved energy saving plant 100% * first £50,000 expenditure per year 100% * expenditure over £50,000 40% * general: writing down allowance on residue of expenditure 20% * long life assets 10% * features integral to buildings 10% Cars * writing down allowance: CO2 ratings from 111-160g/km 20% * writing down allowance: CO2 ratings over 160g/km 10% * low emission cars (rating up to 110g/km) 100% Research and development: capital equipment 100% Buildings (excluding land value) * industrial buildings: straight line allowance 2% * agricultural buildings, qualifying hotels 2% * enterprise zone commercial buildings in first year 100% * enterprise zone buildings if 100% not claimed 12.5% The above buildings allowances are being phased out by 2011. * converting vacant space over commercial premises into flats 100% Know-how and patent rights (not corporation tax) 25%

Different rules for corporation tax

Certain categories of capital expenditure by companies are treated differently. New expenditure on 'intangible assets', including goodwill, know-how and patent rights, is in general relieved for tax according to the accounting treatment (i.e. depreciation). There are increased allowances for companies which clean up contaminated land or carry out R&D work - the expenditure is uplifted for tax purposes, effectively creating a grant for doing the work. The uplift is 50% for land remediation, 75% for small/medium company R&D, and 30% for large company R&D.

Rates

The rate of tax depends on the total profits of the company, but marginal relief is available where the profits fall within particular bands. The effective rate of tax within the band is shown in the table.

Profits (P) 1.4.08-31.3.09 and 1.4.09-31.3.10 £0 - £300,000 21% over £1.5m 28%

Marginal relief applies to profits between £300,000 and £1.5m giving an effective marginal rate of 29.75% on profits in this band. The bands are adjusted for associated companies and for accounting periods of less than 12 months.

Payment and filing

Companies which do not pay at the full rate (i.e. profits below £1.5m) settle their CT liability 9 months and a day after the end of the accounting period. Large companies generally make payments on account of CT 6.5 months, 9.5 months, 12.5 months and 15.5 months after the start of a 12 month accounting period, with interest running until final settlement of the period's liability. All companies file returns 12 months after the end of the period.

Taxation of dividends

Companies are not charged to CT on dividends received from other UK companies. Individuals and trusts receive dividends with a 10% 'tax credit'. The dividend plus the tax credit (100/90 of the amount received) is treated as taxable income, and the 10% tax credit settles some or all of the tax liability. But a taxpayer with no liability cannot obtain a repayment of the tax credit from the Revenue - it can only be used to settle liabilities.

Substantial shareholdings

Trading companies do not pay tax on disposals of 'substantial shareholdings', which are 10% holdings in other trading companies which have been held for at least 12 months.

Corporate venturing scheme

Companies can receive a 20% tax credit for investment in new shares in qualifying 'corporate ventures'. Such companies must be owned at least 20% by individuals, and the corporate investor must own not more than 30% to qualify.

Rates of tax

The standard rate of VAT is 15%, or 3/23 of the consideration received for making a supply. This is a temporary reduction from 17.5% (7/47 of consideration), which will return on 1.1.2010. A lower rate of 5% (or 1/21 of the gross receipt) applies to some supplies such as domestic fuel and power, installation of energy saving materials in houses, and some conversions of residential property. A zero rate applies to a range of supplies including most food, books, new houses, and children's clothes. Certain other supplies are exempt, which means no tax is charged to the customer, but the supplier cannot recover VAT on costs. These include many land-related supplies, insurance, finance, education, health and welfare, and non-profit sports clubs.

Thresholds

An unregistered business must register if it has made £68,000 of taxable supplies in the last 12 months, up to any month end, or if it expects to make £68,000 of taxable supplies in the next 30 days. A registered business can deregister if it can satisfy HMR&C that taxable supplies in the next year will not exceed £66,000. Small businesses with taxable turnover of up to £150,000 can opt to use the 'flat-rate scheme'. A single rate, which varies with the type of business, is applied to all receipts, and no VAT is claimed on costs. The single rate is lower than 3/23 to compensate for lost input tax. Small businesses with taxable turnover of up to £1.35m can enter the cash accounting scheme (only paying VAT to HMR&C when customers have paid). The annual accounting scheme (filing a single VAT return each year instead of one every three months) is also available with turnover up to £1.35m.

Scale charge for private use of fuel paid for by business

Where a business buys car fuel and allows it to be used for private motoring, it has to account for output tax on the supply. There is a scale rate based on the CO2 emissions rating of the car. It will be necessary to find the exact charge on the HMR&C table. Example rates for a 3-month period (from 1.5.09 to 31.12.09) are: * up to 120g/km: £16.43 VAT * 135g/km: £24.65 VAT * 235g/km or more: £57.52 VAT

Returns and payments

Most VAT returns are prepared for three-month periods, and they are due (with any payment) by the end of the following month.

Stamp duty, stamp duty reserve tax (SDRT) and stamp duty land tax (SDLT) are charged on transactions in shares and land. The rates are:
Charged on total consideration Rate *  shares (stamp duty/SDRT)     - value up to £1,000 nil   - value over £1,000 0.5% *  land (SDLT):     - up to threshold 0%   - threshold - £250,000 1%   - £250,001 - £500,000 3%   - over £500,000 4%
The threshold depends on whether the property is residential or commercial and whether it is in a "disadvantaged area":
	Residential	Commercial
General	*£125,000	£150,000
Disadvantaged	*£150,000	£150,000
* These thresholds have been temporarily increased to £175,000 until 31.12.2009.
The first sale of a new "zero carbon" property will be exempt from SDLT if the value is up to £500,000. Stamp duty is charged on the total consideration, and is always rounded up to the nearest £5. SDLT is charged on the whole consideration and is rounded down to the nearest £1. SDLT is charged on the grant of a lease on any premium (using the above rates) and on the discounted net present value of the rental stream. This charge is at 1% of the excess of the NPV over the threshold. Gifts, wills and other 'gratuitous transfers' are generally not liable to duty at all. Stamp duty and its related taxes are normally due from the purchaser within 30 days of the chargeable transaction.

Insurance premium tax (IPT) is charged on insurance premiums at 5% (general insurance) or 17.5% (travel insurance and warranties sold with cars and certain household goods). It is generally collected by the insurer as part of the premium.

Some long-term insurance products are exempt from IPT, such as term life insurance, endowments and pensions.