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<p>All car insurance is subject to Insurance Premium Tax (IPT), which is a tax paid
by insurers on all general insurance premiums</p><p> </p><p>As IPT is a tax paid by
insurers, it is difficult to target a tax relief to benefit young drivers specifically.
Tax reliefs of this kind also add complexity to the tax system and are likely to result
in similar calls for reliefs on other forms of expenditure.</p><p> </p><p>However,
the government does not apply VAT to any car insurance.</p><p> </p>
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