General Insurance Article - Insurance Premium Tax hits new record with 1 month to go

 Cara Spinks, Head of Life & Health at leading financial services consultancy Broadstone, said: "The latest IPT receipts confirm that 2024/25 will be yet another record IPT haul for the Chancellor – and break the previous record by some distance. Demand from consumers in the independent healthcare market has continued to increase in recent months. Rising economic inactivity due to long-term illness and NHS waiting lists has seen individuals and employers increasingly turn to the insurance sector to provide health and wellbeing support, which in turn has increased premium income and tax receipts.

 “This shift towards the independent sector has been an important part of alleviating some pressure on public health services. Health insurance products, such as private medical insurance and health cash plans, offer access to vital preventative and supportive treatments. We continue to encourage the government to consider removing IPT from health insurance products. Doing so would align with its mission to boost productivity and economic activity, while also supporting broader goals of reducing NHS waiting lists, maintaining a healthy workforce, and driving long-term economic growth.”