Insurance Premium Tax (IPT) receipts reached £53 million in December 2024, according to the latest data from HM Revenue and Customs (HMRC).
This brought the total for the third quarter (October to December) of the 2024/25 financial year to £2.2 billion, representing a 5% increase – equivalent to £101 million – compared to the same period last year, when £2.1 billion was collected.
Cumulatively, IPT receipts for the financial year so far (April to December) have totalled £6.7 billion, £604 million, or 10%, higher than the £6.1 billion recorded in the corresponding period of 2023/24.
This reflects a significant increase in IPT collection compared to pre-pandemic levels. For instance, the first three quarters of the 2019/20 financial year saw total IPT receipts of £4.8 billion, which is 39% lower than current levels.
In November 2024 alone, IPT receipts amounted to £1.2 billion, bringing the eight-month total for the financial year to £6.65 billion, an increase of 10.4%, or £627 million, compared to £6.02 billion collected during the same period in 2023/24.
Commenting on the figures, Cara Spinks (pictured above), head of life & health at Broadstone, highlighted IPT's role as a key revenue source, noting that December receipts contributed significantly to the £6.7 billion total so far this year.
"Demand for independent healthcare services remains elevated as individuals and businesses seek alternatives to NHS support,” Spinks said. “However, continued cost pressures are driving up premiums for products like health cash plans and private medical insurance, making them less accessible to employers and individuals despite their value in mitigating demand for certain NHS services, and the role they play in early screening and intervention.
Spinks called on policymakers to reduce or eliminate IPT for health insurance products, suggesting that such measures could improve access to independent healthcare, enhance government plans to coordinate NHS activity with the independent sector, and support long-term economic objectives.
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