IPT receipts rose to £8.88bn in last financial year

Insurance Premium Tax (IPT) receipts hit £8.88bn in the 2024 to 2025 financial year, according to figures released by HMRC.

The total is £737m (9%) higher than the previous financial year, when the figure stood at £8.15bn.

It means that over the last five years, IPT receipts have risen by £2.58bn (40%) from £6.31bn in 2020/21 financial year.

This follows the latest monthly HMRC update, which found that IPT receipts recorded a total of £2.17bn through the first quarter of 2025/26, an increase of £55m (2.6%) compared to the same period in 2024/25.

Causes of rise

HMRC’s figures were analysed by financial services consultancy Broadstone.

Ewen Tweedie, actuarial director at the firm, said that a significant driver of this growth is rising demand for health insurance products, including private medical insurance and cash plans.

“Poor access to NHS services is prompting more individuals to seek private cover while employers are increasingly investing in broader health insurance coverage to protect the productivity of their workforce, often footing more expensive claims as delayed treatment and diagnosis exacerbate employees’ health conditions,” Tweedie said.

“However, rising premiums, compounded by IPT, risk making these valuable products unaffordable for many and could restrict access, particularly for smaller businesses and lower-income households.

“If the government is serious about supporting the economy and strengthening the nation’s health, it should consider a targeted IPT carve‑out for health insurance.

“This would help maintain affordability, widen access to efficient independent healthcare and ensure these products continue to play a vital role in alleviating pressure on the NHS.”