That brings the total IPT collected in the first four months of this financial year to £3.20 billion, an increase of £123 million compared to the same period in last year (£3.07 billion).
The last financial year delivered record IPT revenues of £8.88 billion and the latest OBR forecasts on IHT made at the Spring Statement estimate that the tax would raise £9.2 billion for the Treasury in 2025/26, with this figure rising to £9.9 billion by the end of the decade.
Cara Spinks, Head of Life & Health at Broadstone, said: “July’s IPT receipts once again show how quickly revenues from this tax are accelerating. It has become a reliable source of income for the UK government, but one that is heavily influenced by the uptake of health insurance products, which is continuing to grow. Continuing pressures within the NHS mean that some individuals are unable to receive care on a timely basis, increasingly turning to private cover alongside employers continuing to widen workplace benefits and access to valuable insurance products to support their teams.
“However, even as demand for health insurance grows, inflationary pressures on costs in the industry mean that premiums are increasing, and the added burden of IPT risks putting cover out of reach for many. With the impending Autumn Budget, the Government has an opportunity to deliver a targeted IPT relief on health insurance. This would not only help maintain affordability and widen access but would also deliver clear economic benefits – supporting smaller employers, protecting workforce productivity, and easing pressure on public health services.”
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