Ryan FowlerInsurance Premium Tax (IPT) receipts reached an all-time high of £8.88bn in the 2024/25 financial year, according to data published by HMRC this morning. The figure marks an increase of £737m or 9% compared to the previous year’s total of £8.15bn.
A decade ago, in 2014/15, IPT receipts stood at £2.97bn – meaning Treasury revenue from the tax has increased by 200% over the past 10 years. Over a five-year period, receipts have climbed 38%, from £6.42bn in 2019/20, underlining the growing role of IPT in the UK tax base.
Commenting on the figures, Cara Spinks, head of life and health at Broadstone, said: “The full-year IPT receipts to March 2025 indicate another significant increase for the Chancellor, surpassing previous records and providing the Treasury with a substantial multi-billion-pound boost.”
She added: “The increasing demand for health insurance products such as private medical insurance and health cash plans, partially driven by longer NHS waiting lists, has contributed to this growth.”
Spinks noted that more employers are turning to the independent healthcare sector: “We have noticed an increasing number of employers seeking support from the independent healthcare sector for their workforce. 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 added that policy reform should be considered: “As the Government continues to explore ways to enhance the nation’s health and wellbeing, removing or reducing IPT from health insurance products could be a strategic move. While this would need to be balanced against a potential reduction in tax revenue, it could support the Government’s goals of boosting productivity, complement the valuable work of the NHS, and increase workforce participation.”
