20 February 2026
If you are covering the latest HMRC tax receipts data, please see the following comment from Shaun Moore, tax and financial planning expert at Quilter:
“HMRC’s tax receipts for January show the Treasury kicked off the year with another healthy boost to its coffers. Frozen thresholds and allowance reductions continue to do much of the heavy lifting, and households are bearing the brunt.
“The changes to Capital Gains Tax, which have seen the annual exempt amount slashed and higher tax rates introduced on many assets, have started to bite. CGT receipts for January 2026 totalled almost £17 billion, compared to just over £10 billion in January 2025. Between April 2025 and January 2026, CGT receipts came in at £18.8 billion, up considerably compared to £11.9 billion in the same period last year. There is usually an annual uplift in CGT take in January, but this jump may be suggestive of post budget selling after Rachel Reeves opted not to make further changes.
“Until now, the data had suggested a change in behaviour, with investors delaying selling, reducing disposals or restructuring their affairs entirely. However, today’s huge jump in the tax take will be music to the Chancellor’s ears and suggests many were unable to avoid the tax hit for any longer.
“Elsewhere, PAYE Income Tax and NICs receipts from April 2025 to January 2026 came in at £388.2 billion, marking an increase of £39.1 billion compared to the same period last year. Fiscal drag has taken centre stage in the government’s tax take for several years now, and with income tax bands frozen until 2031, its impact will only rise.
“While headline tax rates have been left unchanged, the share of income being taxed has risen considerably, and an increasing number of people are being pulled into higher tax brackets much earlier in their careers with only relatively modest increases to their salaries. This strategy has resulted in a stealthy increase in government revenues, but it comes at the cost of a real squeeze on household budgets.
“Families are also facing a significant uplift in inheritance tax bills as more people are caught by its net. Inheritance tax receipts reached £7.1 billion between April 2025 and January 2026, up by £0.1 billion compared to the same period last year and on track to set a new annual record.
“With the nil-rate band fixed at £325,000 since 2009, escalating property values and accumulated savings are gradually drawing more estates into the tax net. Halifax recently reported that the average house price has surpassed £300,000 for the first time, leaving very little left before IHT applies. What was once a levy impacting only the wealthiest families is fast becoming a burden even for those with modest wealth. With pensions set to come into scope for inheritance tax from April 2027, the number of families impacted – and the subsequent tax take – will grow rapidly.
“With just a couple of months remaining of the current tax year, it is vital that people look to make the most of the allowances available to them. Making ISA contributions, topping up your pension, and utilising your annual gifting allowance, among others, all play a key role in mitigating your overall tax bill. Where possible, you should seek professional financial advice to ensure you are making the most tax efficient decisions for you and your family.”
