HMRC’s tax receipts between April and October rose sharply with income tax, national insurance, inheritance tax and capital gains tax intake all rising.
Income tax, national insurance and capital gains tax receipts for the period jumped £28.1bn to £235.6b.
Inheritance tax receipts soared to £0.5bn to £4.1bn.
“HMRC’s tax take continues to soar with the amounts of income tax, capital gains, inheritance taxand stamp duty heading skywards as a combination of threshold freezes and strong demand for property continue to play out,” said Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown.
Morrissey continued to explain the implications of tax changes at the Autumn Budget and how it could impact tax payer behaviours.
“The squeeze looks set to continue with these taxes taking centre stage in the Chancellor’s Autumn Statement with income tax and inheritance tax frozen for a further two years and the threshold for additional tax rate payers slashed. Capital gains tax changes will penalise those holding investments outside ISAs and pensions and stamp duty changes may force one last stampede to purchase that dream home before the threshold goes back down in 2025.”
Inheritance Tax
While income tax and national insurance are unavoidable, there are many schemes available to mitigate inheritance tax. These include using your pension allowance effectively and utilising schemes such as the Enterprise Investment Scheme (EIS) to invest in British business.