Insurers contribute £17.2bn in taxes to UK economy

The insurance and long-term savings industry has contributed a record £17.2bn to the UK economy in tax in 2021-22, according to the Association of British Insurers’ (ABI) latest Total Tax Contribution Survey.

The annual survey found that the sector contributed 6.9% more in tax in 2021-22 than in 2019-20, marking the highest amount since the study began.

The total contribution comprises £4.8bn of taxes borne, such as corporation tax, irrecoverable VAT and employment tax, and £12.4bn of taxes collected through Insurance Premium Tax (IPT), employee income tax, and National Insurance Contributions.

Mervyn Skeet, director of general insurance policy at the ABI, said: “With these latest record figures, there is no doubt that the sector is key in not only securing the futures of everyone in the UK, but also the economy as well. Given the turbulence in the market over the past year these results prove that, when faced with challenging conditions, the sectors’ tax and wider economic contribution remains significant.”