IPT bill reaches record 8.88 billion pounds in 2024/25 tax year
By Rebecca Delaney
April 23 - (The Insurer) - Receipts from insurance premium tax (IPT) stood at 61 million pounds in March 2025, bringing the total for the 2024/25 financial year to a record 8.88 billion pounds, according to HMRC data.
Total IPT revenue for the 2024/25 financial was up 9% from 8.15 billion pounds in the prior year.
In October 2024, Chancellor Rachel Reeves’ autumn budget did not provide any update on IPT, with the 12% standard rate and 20% higher rate maintained.
Following the budget announcement, the Office for Budget Responsibility (OBR) forecast IPT revenue would top 9 billion pounds in 2025/26 before further increasing to 9.56 billion pounds by 2028/29.
Financial services consultancy Broadstone said IPT annual receipts had accelerated over the past decade, having totalled 2.97 billion pounds for the 2014/15 financial year.
This marks a 199.9% increase over the 10-year period, with annual IPT revenue increasing 38% over the last five years alone, which Broadstone said underscores "just how lucrative IPT has become for the Treasury."
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