Insurance Premium Tax (IPT) receipts in the UK reached £61 million in March 2025, bringing the total for the 2024/25 financial year to a record £8.88 billion, according to the latest data published by HM Revenue and Customs (HMRC).
The figure marks a £737 million increase, or 9%, compared to the previous year’s total of £8.15 billion.
The latest annual total represents a 200% increase from a decade ago, when IPT receipts for the 2014/15 financial year stood at £2.97 billion. Receipts have also grown by 38% over the past five years, rising from £6.42 billion in 2019/20.
In February, IPT receipts in the UK reached a record £7.6 billion for the 2024/25 financial year. January 2025 alone saw £853 million collected, emphasising projections that this could be the highest revenue-generating year for IPT yet.
This trend is a continuation from 2024, when 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.
Commenting on the data, Cara Spinks (pictured above), head of life & health at financial services consultancy Broadstone, said the receipts to March 2025 show another substantial rise in collections for the Chancellor, delivering what she described as a “multi-billion-pound boost” to government funds.
She said one of the contributing factors is the growing demand for health insurance products, including private medical insurance and health cash plans, which has partly been driven by extended NHS waiting times.
"We have noticed an increasing number of employers seeking support from the independent healthcare sector for their workforce,” Spinks said. “This shift is largely due to the rise in economic inactivity caused by chronic illness combined with ongoing challenges within the NHS which have limited its ability to support general population health and productivity.”
She noted that if the Government aims to improve national health outcomes and economic participation, it could consider policy changes such as removing or reducing IPT on health insurance.
While this could impact tax revenue, Spinks said the measure might support broader objectives related to workforce productivity and NHS capacity.
What are your thoughts on this story? Please feel free to share your comments below.
