Insurance Premium Tax (IPT) receipts reached £1.3 billion in February 2025, bringing the total collected for the first 11 months of the 2024/25 financial year to £8.8 billion, according to new data published by HM Revenue & Customs.
The figure surpasses the total collected in the entire 2023/24 financial year, setting a new annual record with one month of data still to be reported. Total IPT receipts for the financial year 2023 to 2024 were £8.146 billion, an increase of £805 million (11%) compared to the previous financial year 2022 to 2023.
The upward trend in IPT receipts continued throughout 2024. For instance, in November 2024 alone, IPT receipts amounted to £1.2 billion, bringing the eight-month total for the financial year to £6.65 billion.
This represents a 10.4% increase (£627 million) compared to the £6.02 billion collected during the same period in 2023.
Cara Spinks (pictured above), head of life & health at Broadstone, said 2024/25 would register another record IPT total for the Treasury, significantly above the previous high.
Economic inactivity linked to long-term illness and extended NHS waiting times had led individuals and employers to seek alternative health and wellbeing support through insurance offerings, which had contributed to increased premium volumes and associated tax revenue.
Spinks also said the move toward private provision had played a role in easing some pressure on the public healthcare system.
While specific forecasts for IPT receipts in 2025 are limited, the EY ITEM Club Outlook for UK Insurers anticipates steady but slowing growth in premium income over the next three years.
Non-life insurance premium income is expected to grow by 5.2% in 2025 (down from 8.4% in 2024), 4.3% in 2026, and 3.6% in 2027.
Similarly, life insurance premium income is projected to grow by 4.4% in 2025 (down from 5.8% in 2024), 3.3% in 2026, and 3.7% in 2027. These projections suggest a moderation in premium growth, which could influence future IPT receipts.
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