Insurance Premium Tax (IPT) receipts reached £53m in December 2024, according to data from HM Revenue & Customs.
The data reveals this brings the Q3 (October-December 2024) total for the 2024/25 financial year to £2.2bn. This exceeds last year’s Q3 total (£2.1bn) by 5% or £101m.
It also means that the IPT has accrued £6.7bn so far this financial year, which is £604m or 10% higher than the Q1-Q3 total last year of £6.1bn).
This compares to the first three quarters of the 2019/20 financial year which saw total IPT receipts of £4.8bn – 39% lower than current levels.
Cara Spinks, head of life and health at financial services consultancy Broadstone, said: “Insurance Premium Tax was a significant source of income for Treasury this Christmas, with December receipts reaching £53m and driving the financial year total to £6.7bn—£604m more than last year’s revenue at this point.
“Demand for independent healthcare services remains elevated as individuals and businesses seek alternatives to NHS support.
“However, continued cost pressures are driving up premiums for products like health cash plans and private medical insurance, making them less accessible to employers and individuals despite their value in mitigating demand for certain NHS services, and the role they play in early screening and intervention.
“While it is positive that the government is co-ordinating NHS activity for specialist areas of treatment with the independent healthcare market, we strongly urge policymakers to consider reducing or removing IPT for these health insurance products.
“This would improve access to independent healthcare and enhance the impact of the government’s plans while supporting long-term economic goals.”
