A total of £957 million was collected through July 2024, compared to £884 million in the same month in the previous year.
Cara Spinks, Head of Life & Health at leading independent consultancy Broadstone, said: “Insurance Premium Tax continues to deliver substantial receipts for The Treasury as premium inflation continues to impact a multitude of sectors and products.
“This is especially prevalent in the private health industry, where increased demand driven by current lengthy waiting lists for NHS treatment and an increase in long-term sickness has prompted employers to expand coverage in order to support employees back to work and increase productivity.
“The Chancellor’s desire to find alternative revenue streams to reduce the size of the UK’s fiscal ‘black hole’ suggests a reduction in IPT for health insurance products such as PMI and health cash plans is unlikely at the Autumn Budget.
However, given this administration’s focus on growth, it is an area we would encourage them to scrutinise carefully. Providing affordable access to the private healthcare market, particularly for early intervention and preventative treatments, goes some way to alleviating the burden on the NHS - a key manifesto pledge.
“By supporting and incentivising businesses to protect the workforce’s health and productivity via more comprehensive health benefit schemes, the government would achieve the desired economic benefits by keeping the nation healthier and in work.”
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
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