If an insurer operates from abroad, how much UK insurance premium tax is applicable on their premiums?

When an insurer operates from abroad, UK insurance premium tax does not apply to their premiums. This is because insurance premium tax is generally levied on insurance policies that cover risks situated in the UK, and it is specifically charged on policies issued by insurers that are considered to be conducting business in the UK. If an insurer is operating from outside the UK, they would not be subject to this tax, as the premiums are not considered to be generated within the jurisdiction.

This reflects the principle that taxes are typically applied based on the location of the insurer and the risks being insured. Therefore, when assessing the tax implications for an insurer based overseas, the absence of tax on their premiums aligns with the regulatory framework governing insurance premium tax in the UK.