IPT receipts hit new annual record

Insurance Premium Tax (IPT) receipts stood at £88m in March 2026.

That is according to data from HMRC, published on 23 April 2026, which revealed that the full year IPT total for the 2025/26 financial year reached a record £9.04bn.

This exceeded last year’s total of £8.88bn by £157m.

The Office for Budget Responsibility’s Spring Statement forecasts indicate that IPT is now expected to raise £57.8bn between 2025/26 and 2030/31, marking a £500m increase from estimates made after the Autumn Budget in November (£57.3bn).

’Significant tax’

Cara Spinks, head of life and health at financial services consultancy Broadstone, said: “Another record year for IPT receipts reflects how significant this tax has become for the public finances.

“Rising demand for health insurance, particularly private medical insurance, continues to be a key driver. Individuals and employers are increasingly looking for faster access to care against the backdrop of sustained pressure on the NHS. For employers, PMI plays an important role in supporting workforce health and participation – helping people access diagnosis and treatment more quickly and, in turn, return to work sooner.

“However, higher premiums combined with IPT are adding to cost pressures and risk limiting access at precisely the point demand is increasing. With IPT revenues expected to rise further, there is a strong case for government to revisit how the tax applies to health insurance.

”A more nuanced approach, aligned with the objectives of the Keep Britain Working Review, could improve access to these products, support employers and help relieve pressure on public services.”