Provisional insurance premium tax receipts for the first three months of the 2024/25 financial year were £2,116m, which is £236m (13%) higher than in the same period last year. This comes on top of the record IPT receipts of £8,146m generated by HMRC in 2023/24, which was £805m (11%) up on the previous year.

Brett Hill, head of health and protection at consultancy Broadstone, said: “Since Labour’s election victory it’s clear that insurance premium tax remains a driving force behind the Treasury’s revenue numbers.”

He added: “The Chancellor’s desire to find alternative revenue streams to bolster the Treasury’s coffers and limit the UK’s fiscal ‘black hole’ may bring IPT into question ahead of the Autumn Budget in October.”