 The main EU legislation regarding VAT (Council Directive 2006/112/EC) states that insurance and reinsurance transactions, including related services performed by insurance brokers and insurance agents, are exempt from VAT.The Insurance Premium Tax was announced by Kenneth Clarke in the November 1993 budget and introduced with the Finance Act 1994 which received Royal Assent on 3 May 1994.IPT is under the care and management of HM Revenue & Customs.