Insurance premium tax (IPT) raised almost £7bn in the first eight months of the 2025-26 financial year.
Latest HM Revenue & Customs (HMRC) data showed IPT raised £6.78bn in the first eight months of the 2025/26 financial year (April to November), following November’s contribution of £1.26bn.
This represented an increase of £125m compared to the same period last year of £6.65bn, which delivered a record annual total of £8.88bn.
The Office for Budget Responsibility (OBR) forecast, published alongside the Budget, indicated that IPT receipts for the current financial year were on track to reach £8.97bn, with projections rising to £10.1bn by 2030/31.
Cara Spinks, head of life and health at Broadstone, said: “November’s figures confirm another strong month for IPT, taking the year-to-date total to over £6.7bn and keeping the UK on course for another record year.
“However, this comes against a backdrop of rising economic inactivity linked to long-term sickness, which has returned close to post-pandemic highs. Poor health remains a significant drag on productivity as we move into 2026.
“Health insurance products such as private medical insurance and health cash plans have been instrumental in supporting workforce participation and alleviating NHS pressures through early diagnosis and preventative care. Yet, with waiting lists still at record levels, IPT continues to act as a barrier to wider adoption for both employers and individuals.
“The Autumn Budget was a missed opportunity to respond to the Keep Britain Working review by reducing or removing IPT on health insurance products. Doing so would have improved access to these services and supported the government’s stated aims of reducing NHS waiting lists, improving productivity, and driving economic growth.”