IPT receipts total £2.2bn for first quarter of financial year

The Treasury has brought in an Insurance Premium Tax (IPT) income of some £2.17bn over the first quarter of the financial year, according to data released today (21 July 2026) by HMRC.

The figure for the quarter – which covers the months of April to June 2026 – stands narrowly above the same period last year, which brought £2m less into the government’s coffers.

The results mean that 2026 remains on track to surpass the record £9.04bn generated by the levy across 2025. That year beat 2024’s total – itself a record income of £8.88bn – by £157m.

The Office for Budget Responsibility (OBR) recently upgraded the forecasted income of IPT between 2025 and 2031 by £500m, now estimating that £57.3bn will be generated for the Treasury over the next five years.

The high levels of reported income have led to calls for a reduction in IPT rates to aid with the uptake of protective measures across the country, notably regarding employer and individual healthcare policies, which some feel will help ease pressure on the NHS.

Sharp rise in premiums

Cormac Bradley, senior actuarial director at financial consultancy Broadstone, said: “IPT receipts have edged up in the first quarter of the financial year, standing £2m higher than the same period last year following a strong June.

“The recent surge in IPT revenues has been closely linked to the sharp rise in insurance premiums over the past few years, as insurers have responded to higher claims costs and wider economic pressures. While the pace of increases is starting to ease slightly, many policyholders are still facing higher renewal costs than they would have done previously.”

He continued: “The latest forecasts highlight just how significant IPT has become as a source of government revenue. But insurance is not simply a tax base – it is a vital safety net for households and businesses, helping them manage uncertainty and protect against unexpected costs.

“As the new Andy Burnham government considers measures to support growth and reduce pressure on household finances, the impact of insurance affordability should form part of that discussion.”