The UK’s Insurance Premium Tax (IPT) receipts reached £1.2 billion in November 2024, bringing the total for the first eight months of the 2024/25 fiscal year to £6.65 billion, according to the most recent HM Revenue and Customs (HMRC) data.
This marks a 10.4% increase, or £627 million, compared to the £6.02 billion collected during the same period in the previous fiscal year.
In October 2024, IPT receipts totalled £956 million, reflecting a 24% increase from the £770 million collected in October 2023. For the first seven months of the 2024/25 tax year, total IPT revenue reached £5.5 billion, up 14% or £689 million compared to the £4.8 billion recorded in the equivalent period last year.
Cara Spinks (pictured above), head of life & health at financial services consultancy Broadstone, noted that the latest data highlights the growing importance of IPT revenue for the Treasury.
“As the Government winds down for the Christmas break, this morning’s data reinforces the significance of Insurance Premium Tax for the Treasury. November’s IPT receipts of £1.2 million push the 2024/25 eight-month total to £6.65 billion,” Spinks said.
She also pointed to increased demand for private healthcare services, driven by pressures on the NHS and a rise in winter illnesses. This demand is contributing to higher premiums for health cash plans and private medical insurance.
Spinks cautioned that the additional burden of IPT on these products could limit their accessibility, potentially reducing the availability of preventative healthcare benefits that might alleviate strain on public health services.
“Health insurance is a critical tool in supporting workforce wellbeing by reducing absenteeism and enhancing access to care. We urge the government to consider reducing IPT on health insurance products to help expand access to private healthcare, support the health of the UK workforce, and drive long-term economic resilience,” she said.
The IPT figures underline a continuing upward trend in the tax’s revenue, which remains a key contributor to government finances.
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