The latest HMRC data for the latest 12 months of provisional Insurance Premium Tax (IPT) receipts and liabilities data shows that total IPT receipts for the last complete financial year 2023 – 2024 were £8,146 million, which is £805 million (11%) higher than the previous financial year 2022 – 2023. Total provisional IPT receipts for the 2024 – 2025 financial year-to-date (April to June) are £2,116 million, which is £236 million (13%) higher than the same period in the previous financial year 2023 – 2024. Here are some comments from Broadstone;
Brett Hill, Head of Health & Protection at leading independent consultancy Broadstone, said: “Since Labour’s election victory it’s clear that Insurance Premium Tax remains a driving force behind the Treasury’s revenue numbers.
“With premium inflation hitting a variety of sectors and products, record demand for private healthcare as waiting lists and economic inactivity due to long-term illness grow has meant that health insurance is accelerating this trend, with the year-to-date figures already at record levels.
“The Chancellor’s desire to find alternative revenue streams to bolster the Treasury’s coffers and limit the UK’s fiscal ‘black hole’ may bring IPT into question ahead of the Autumn Budget in October.
“We would like to see the new government introduce an IPT carve out on health insurance products such as PMI and health cash plans.
“Access to the private healthcare market is a critical solution to alleviating the burden on the NHS, and supporting and incentivising businesses to protect the workforce’s health and productivity via more comprehensive health benefit schemes has both societal and economic benefits for the country, while minimising costs for the State.”
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