Government receipts for both inheritance tax and insurance premium tax have reached record levels, according to new HMRC data.
Its figures show that IHT receipts for the first 11 months of this tax year (to April 2025) reached £7.6bn. This exceeds the £7.5bn that was collected in the whole of the previous tax year — which itself was a record figure.
Overall this year’s figures, compared to the same 11-month period last year, are 11 per cent higher.
It is a similar picture with insurance premium tax (IPT), with receipts for the 11 months totalling £8.8bn — more than the £8.1bn collected for the whole of the previous tax year.
This figures come as HMRC publishes its tax figures for February. These bumper tax receipts will be welcomed by the Chancellor who is delivering the Spring Statement, against a background of rising spending and higher borrowing costs.
Boosting tax receipts from IHT has already been on the Rachel Reeves radar, with plans announced in the autumn Budget to start including pensions in IHT calculations from April 2027.
Higher IHT receipts have in part been driving by frozen threshold and rising property prices in recent years. Increased revenue from insurance premium tax is in part due to increased spending on private healthcare policies, and the rising cost of many insurance policies — from PMI to home and car insurance.
Just Group director Stephen Lowe says: “Another year, another record-busting inheritance tax haul for the Treasury – that’s four consecutive years of all-time highs.
“Frozen thresholds and rising property prices have been the predominant forces behind this increase to date but changes announced at the Autumn Budget, look set to bring in even greater amounts over the remainder of the decade and beyond. The removal of pension death benefits from Inheritance Tax will come into force from 2027 and is likely to inflate receipts for the Chancellor even more.”
Broadstone head of life & health Cara Spinks adds: “The latest IPT receipts confirm that 2024/25 will be yet another record IPT haul for the Chancellor – and break the previous record by some distance.
“Demand from consumers in the independent healthcare market has continued to increase in recent months. Rising economic inactivity due to long-term illness and NHS waiting lists has seen individuals and employers increasingly turn to the insurance sector to provide health and wellbeing support, which in turn has increased premium income and tax receipts.
“This shift towards the independent sector has been an important part of alleviating some pressure on public health services. Health insurance products, such as private medical insurance and health cash plans, offer access to vital preventative and supportive treatments.
“We continue to encourage the government to consider removing IPT from health insurance products. Doing so would align with its mission to boost productivity and economic activity, while also supporting broader goals of reducing NHS waiting lists, maintaining a healthy workforce, and driving long-term economic growth.”
