IPT receipts crossed £1bn in July as Treasury set for record year

Tax receipts from HMRC show that insurance premium tax (IPT) netted the government £1.03bn in July.

This represents a £68m (7%) increase from the same period last year and brings the total IPT collected in the first four months of the 2025 financial year to £3.2bn, up £123m (4%) from last year.

The latest figures have led the Office for Budget Responsibility (OBR) to forecast a full-year IPT income of £9.2bn – takings which would break the previous record of £8.88bn, set in the 2024 financial year.

The government has recently faced pressures to make cuts to IPT after posting record receipts for June, a move which campaigners said would fuel “growth, business confidence and [support] working people”.

Accelerating revenue

Cara Spinks, head of life and health at financial services consultancy Broadstone, said: “July’s IPT receipts once again show how quickly revenues from this tax are accelerating. It has become a reliable source of income for the UK government, but one that is heavily influenced by the uptake of health insurance products, which is continuing to grow.

“Continuing pressures within the NHS mean that some individuals are unable to receive care on a timely basis, increasingly turning to private cover alongside employers continuing to widen workplace benefits and access to valuable insurance products to support their teams.

“However, even as demand for health insurance grows, inflationary pressures on costs in the industry mean that premiums are increasing and the added burden of IPT risks putting cover out of reach for many.

“With the impending autumn budget, the government has an opportunity to deliver a targeted IPT relief on health insurance. This would not only help maintain affordability and widen access but would also deliver clear economic benefits – supporting smaller employers, protecting workforce productivity and easing pressure on public health services.”