The total value of insurance premium tax collected by HM Revenue & Customs has jumped 11% amid record-high insurance premiums.
Tax receipts from HMRC showed the government collected £6.03 billion in insurance tax premiums through the first two-thirds of the 2023-24 financial year. It compares to £5.45 billion raised through the same period last year.
Cara Spinks, head of insurance consulting at OAC, said the insurance looks set to register “another record tax haul” for the Treasury.
Spinks said: “Rising insurance costs across most sectors have driven increased premiums which have hit households, adding to budget concerns amid the cost of living squeeze.
“We have also seen other drivers emerge such as growing demand for private health insurance as employers and individuals look for alternatives to the overburdened public health service.
“With the Treasury eyeing up tax cuts ahead of General Election in 2024, minimising IPT increases could create a two-pronged economic boost in both easing the pressure on household finances and reducing economic inactivity.”
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