Insurance premium tax (IPT) receipts in the UK reached £648 million in April 2025, according to newly released data from HM Revenue & Customs. The figure marks the highest level ever recorded for the first month of the tax year, reflecting a £33 million or 5% increase compared to April 2024.
The latest monthly result follows a record year for IPT collections in 2024/25, which concluded in March 2025 with total receipts of £8.88 billion. This represents a £737 million, or 9%, increase from the £8.15 billion collected in the 2023/24 financial year. Receipts for March 2025 stood at £61 million.
Compared with April 2023, when IPT revenue was £548 million, the latest figures show a two-year increase of £100 million or 18%. Looking further back, April 2015’s IPT receipts amounted to £195 million, meaning this month’s total is £453 million higher, or 232% greater, than levels reported a decade ago.
Commenting on the data, Cara Spinks (pictured above), head of life & health at consultancy Broadstone, said the receipts for April 2025 had launched the 2025/26 tax year at a strong level, rising £33 million from the same period last year.
“After last year’s record £8.88 billion 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,” Spinks said.
Spinks identified increased demand for independent health insurance products as one of the drivers behind rising premiums and tax revenue.
“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,” she said.
Looking ahead, the Office for Budget Responsibility (OBR) projects that IPT receipts will continue to grow, estimating total collections of £45.9 billion over the five-year period from 2024/25 to 2028/29. This represents an increase of £3.5 billion from previous forecasts.
Despite the increase in revenue, the standard IPT rate remains unchanged at 12%, with a higher rate of 20% applicable to specific insurance products like travel and certain vehicle insurances.
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