“2023/24 appears set to be another record tax-take for Insurance Premium Tax with receipts 11% up on the same point last year.”
Those were the words of OAC insurance consulting head Cara Spinks when the actuarial consultancy revealed that, based on HM Revenue & Customs receipts, the Treasury has collected £6.03 billion in IPT for the first eight months of the 2023-24 financial year that started on April 6.
In a statement sent to Insurance Business, Spinks said: “Rising insurance cost 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.”
What do you think about this story? Share your thoughts in the comments below.
