Accredited official statistics

Insurance Premium Tax (IPT) commentary (July 2025)

Updated 31 July 2025

Headlines

The latest 12 months of provisional Insurance Premium Tax (IPT) receipts and liabilities data show that:

• total IPT receipts for the last complete financial year 2024 to 2025 were £8,883 million, which is £737 million (9%) higher than the previous financial year 2023 to 2024

• standard rate IPT liabilities for the last complete financial year 2024 to 2025 were £8,777 million, which is £519 million (6%) higher than the previous financial year 2023 to 2024

• higher rate IPT liabilities for the last complete financial year 2024 to 2025 were £470 million, which is £5 million (1%) lower than the previous financial year 2023 to 2024

• total provisional IPT receipts for the 2025 to 2026 financial year-to-date (April to June) are £2,171 million, which is £55 million (3%) higher than the same period in the previous financial year 2024 to 2025

About this release

This publication provides Accredited Official Statistics on IPT receipts and declarations.

Accredited Official Statistics were previously known as National Statistics.

IPT is a tax on general insurance premiums. There are 2 rates:

• a standard rate charged on most insurance premiums
• a higher rate for travel insurance, mechanical or electrical appliances insurance and some vehicle insurance

The latest release was published 09:30 31 July 2025 and has been updated with provisional duty receipts data from July 2024 to May 2025 and provisional duty liabilities data from June 2024 to April 2025.

The next release will be published 09:30 31 July 2026 and will be updated with provisional duty receipts data from July 2025 to May 2026 and provisional duty liabilities data from June 2025 to April 2026.

The Insurance Premium Tax (IPT) Bulletin is Crown copyright. Its contents can be used as long as the source is made clear by the user.

Changes since the previous edition

A consultation on changes to HMRC statistics publications was held between 6 January 2025 and 10 April 2025 and the results have been published. It was announced that we will publish statistics 2 months in arrears instead of one month in arrears.

Due to this, the published figures have been lagged by one month. The bulletin has been updated with provisional duty receipts data from July 2024 to May 2025 and provisional duty liabilities data from June 2024 to April 2025.

Receipts

Table 1: Total IPT receipts for the previous 10 financial years, in £ million

Financial Year	Total IPT receipts, £ million
2015-16	3,293
2016-17	4,861
2017-18	5,669
2018-19	6,196
2019-20	6,415
2020-21	6,307
2021-22	6,627
2022-23	7,341
2023-24	8,146
2024-25	8,883

For the full dataset that accompanies Table 1 go to Insurance Premium Tax (IPT) tables (July 2025)

Table 1 illustrates the following trends:

• IPT receipts were generally increasing from the 2014 to 2015 financial year until the 2020 to 2021 financial year, when receipts dropped slightly compared to the 2019 to 2020 financial year, coinciding with the COVID-19 pandemic. From the 2021 to 2022 financial year up to the 2024 to 2025 financial year, receipts have returned to the rising trend

• the general increasing trend since the financial year 2014 to 2015 is partly due to duty rate increases of standard rate IPT in 2015, 2016, and 2017

• growing IPT receipts in the 2022 to 2023 and 2024 to 2025 financial years partly reflect rising car and property insurance premiums over this period. Higher levels of international travel also contributed through higher revenue from travel insurance

Returns analysis

IPT taxpayers mainly follow quarterly accounting periods. Tax returns are due by the end of the month following the accounting period. Payment of tax is also generally due to HMRC by the same time, but taxpayers who pay by direct debit are given a 7 day extension.

These accounting periods and payment patterns cause a 1 to 2 month lag between accounting periods ending and receipts being received by HMRC. This explains why the latest data for liabilities from returns is 1 month behind the latest data for receipts in this publication.

Table 2: Total standard and higher rate liabilities declared by financial quarter for the previous 6 financial years, in £ million

Financial Quarter	Standard Rated Liabilities, £ million	Higher Rated Liabilities, £ million	Total Liabilities, £ million
2019-20 Q1	1,642	86	1,728
2019-20 Q2	1,587	97	1,685
2019-20 Q3	1,567	93	1,661
2019-20 Q4	1,564	99	1,663
2020-21 Q1	1,564	70	1,634
2020-21 Q2	1,611	61	1,673
2020-21 Q3	1,559	64	1,623
2020-21 Q4	1,585	60	1,646
2021-22 Q1	1,696	58	1,754
2021-22 Q2	1,714	61	1,775
2021-22 Q3	1,664	61	1,725
2021-22 Q4	1,678	87	1,765
2022-23 Q1	1,854	86	1,940
2022-23 Q2	1,815	117	1,932
2022-23 Q3	1,819	111	1,930
2022-23 Q4	1,847	101	1,948
2023-24 Q1	2,053	113	2,166
2023-24 Q2	2,052	134	2,186
2023-24 Q3	2,054	121	2,175
2023-24 Q4	2,099	107	2,206
2024-25 Q1	2,277	123	2,400
2024-25 Q2	2,189	126	2,315
2024-25 Q3	2,133	102	2,235
2024-25 Q4	2,179	118	2,297

For the full dataset that accompanies Table 2 go to Insurance Premium Tax (IPT) tables (July 2025)

Table 2 illustrates the following trends:

• standard rate liabilities make up a large majority of total liabilities

• standard rate declarations have followed a generally rising trend over the period shown, with some fluctuation from quarter to quarter

• higher rate declarations increased in the 2022 to 2023 and 2023 to 2024 financial years, having previously fallen in the 2020 to 2021 and 2021 to 2022 financial years. In the 2024 to 2025 financial year, higher rate declarations remain high

• having been fairly stable previously, liabilities in both standard and higher rated tax increased in the 2022 to 2023 and 2023 to 2024 financial years. The increase in standard rated liabilities is partly due to rising car and property insurance premiums over the period in question. Increases in international travel contributed to the larger liabilities in higher rated tax, since travel insurance is always taxed at the higher rate

Contacts

The IPT Bulletin is produced by the Indirect Tax Receipts Monitoring team as part of the Excise duties, VAT, and other tax statistics collection.

For statistical enquiries, contact:

revenuemonitoring@hmrc.gov.uk

For media enquiries, see HMRC press office.