The Institute of Transport Administration was founded in 1944 as The Institute of Traffic Administration. It was registered as a Friendly Society on 25 July 1944 under society number 53SA.

By special resolution passed on 29 January 1981, the Institute's membership resolved to change its name to The Institute of Transport Administration. Following approval from The Registrar of Friendly Societies, the Institute began using the new name with effect from 1 May 1981.

The original objectives, which continue to this day, are to broaden and improve the knowledge, skills and experience of its members in the practice of efficient and effective transport management (traffic management), relating to all spheres of transportation including road, rail, sea and air. This is achieved by maintaining and enhancing the professional standing and knowledge of transport management through the Institute's education and compliance programs and meetings, by providing considered professional opinion on current and proposed transport legislation and policies and by protecting its integrity as a professional body recognised by the UK Department for Transport and the Traffic Commissioners.

On the introduction of Transport Managers Certificates of Professional Competence (CPCs) in 1977, required by European Directives 74/561/EEC and 74/562/EEC, the UK Secretary of State for Transport designated the Institute as an "Approved Body" under the Public Service Vehicle Operators (Qualifications) Regulations 1977 and Goods Vehicle Operators (Qualifications) Regulations 1977 enabling it to issue CPC Exemption Certificates to Corporate Members engaged in road transport operations. With effect from 5 December 2011 "Approved Body" status was withdrawn from all organisations holding it. Exemption Certificates issued by the Institute before that date continue to be valid though.