The UK’s tax, payments, and customs authority, HM Revenue & Customs (HMRC), has released its tax receipts data for financial year April 2023 to March 2024, showing another record period for Insurance Premium Tax (IPT) collection.
According to the HMRC report seen by Insurance Business, here are the IPT numbers for the past 20 years:
|
Financial year |
IPT receipts (in £ million) |
|---|---|
|
2004 to 2005 |
2,359 |
|
2005 to 2006 |
2,343 |
|
2006 to 2007 |
2,314 |
|
2007 to 2008 |
2,306 |
|
2008 to 2009 |
2,281 |
|
2009 to 2010 |
2,259 |
|
2010 to 2011 |
2,400 |
|
2011 to 2012 |
2,941 |
|
2012 to 2013 |
3,021 |
|
2013 to 2014 |
3,014 |
|
2014 to 2015 |
2,965 |
|
2015 to 2016 |
3,293 |
|
2016 to 2017 |
4,861 |
|
2017 to 2018 |
5,669 |
|
2018 to 2019 |
6,196 |
|
2019 to 2020 |
6,415 |
|
2020 to 2021 |
6,307 |
|
2021 to 2022 |
6,627 |
|
2022 to 2023 |
7,341 |
|
2023 to 2024 |
8,146 |
As shown above, IPT receipts in 2023/24 amounted to over £8.1 billion.
Commenting on the annual sum, OAC insurance consulting head Cara Spinks (pictured) said in a statement: “The full-year HMRC figures confirm yet another record-breaking year for IPT driven by rising insurance premiums. There is growing evidence that premium inflation is slowing but, amid record waiting lists and economic inactivity due to long-term illness, demand for health insurance continues to increase as employers look to protect the wellbeing of their workforce.
“Costs remain a challenge for this market, so we would like to see a commitment from the government to reducing or removing IPT on health insurance products such as PMI (private medical insurance) and health cash plans. It is well understood that the longer an individual is off sick, the harder it is for them to re-enter the workforce, and these products support early intervention by tackling the root cause and enabling people to remain in work.”
Spinks asserted: “Reducing or removing IPT would be a step in the right direction, making these products more affordable and increasing accessibility. More employees would get access to the healthcare they need to be productive at work, reduce absenteeism and increase productivity, all the while reducing the pressures on public health services.”
Citing the Office for Budget Responsibility’s forecast, actuarial consultancy OAC noted that IPT receipts are projected to reach £8.8 billion by 2028/29.
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