IPT receipts hit record monthly high as 2025/26 tax year begins

Insurance Premium Tax (IPT) receipts reached a record £648m in April 2025, according to data published by HM Revenue and Customs today (22 May 2025).

The total represented a £33m – or 5% – year-on-year increase from April 2024 and the rise kicks off the start of the new tax year for IPT receipts at a record high.

Last year’s tax year for IPT receipts went onto total £8.88bn in 2024/25, surpassing the 2023/24 figure by £737m.

Cara Spinks, head of life and health at financial services consultancy Broadstone, said: “After last year’s record £8.88bn in IPT receipts, today’s data for April continues to reinforce IPT as a healthy revenue source for Treasury, thanks to continued growth in premiums across a range of insurance products.”

Driver for rise

Spinks noted that one of the drivers of this continued growth was the rising demand for private health coverage, which was caused by concerns about NHS waiting lists and workforce inactivity linked to chronic illness.

She continued: “Growing demand for independent health insurance products has been one of the drivers for increased premiums and tax receipts.

“Over the last few years, we have not only seen an uptick in individuals opting for independent healthcare options, but businesses are increasingly investing in a variety of healthcare and wellbeing strategies to combat the rise in economic inactivity caused by chronic illness.”

Spinks argued that the Treasury should reassess IPT on preventative products such as health cash plans, which she said had an important role in supporting employee health.

“Independent health insurance products, such as health cash plans, offer significant preventative healthcare benefits and we continue to urge the government to consider removing or reducing the rate of tax charged to consumers on these products in order to support the general health and wellbeing of the UK workforce,” she added.