21 August 2026
If you are covering the latest HMRC tax receipts and national insurance contributions data, please see the following comment from Shaun Moore, tax and financial planning expert at Quilter:
"With a little over two months until John Healey stands at the despatch box, the government will be pleased to see tax receipts continuing to climb. PAYE income tax and national insurance contributions for April to July came in at £173.2 billion, which is £12.5 billion more than the same period last year.
"The decision to extend the freeze on income tax thresholds was one of the defining measures of the previous budget, despite concerns previously raised by the same Chancellor about the impact on working people. These latest figures demonstrate exactly why the government finds fiscal drag so difficult to resist.
"As wages rise, more people are being pulled into paying income tax for the first time, while millions more are finding themselves nudged into higher tax bands. For the Treasury, it is an effective way of boosting revenues without announcing headline tax rises, but for taxpayers it often means paying more tax without feeling any better off.
"What was originally framed as a temporary measure has become one of the most dependable sources of revenue for the public finances. The longer thresholds remain frozen, the more tax receipts rise and the harder it becomes for any government to give up that income.
Inheritance Tax receipts continue to climb
"Inheritance Tax receipts for April to July reached £3.2 billion, £0.1 billion higher than the same period last year. While receipts can fluctuate from one month to the next, the longer-term trend remains firmly upwards. Frozen thresholds, rising property values and growing asset wealth continue to pull more families into the scope of inheritance tax, often without them realising.
"With the budget drawing near, wealth taxes are likely to attract increasing attention as the government looks at how best to balance the books. However, any significant changes would need to be carefully balanced against the government's wider economic priorities.
"For families, the priority should be focusing on what is already known. With pensions set to become subject to inheritance tax from April 2027, now is a sensible time to review estate planning arrangements and ensure they remain appropriate."
Capital Gains Tax remains in focus
"Capital Gains Tax receipts for July were £194 million, £29 million higher than the same month last year. CGT revenues can be volatile, but the wider picture remains one of a considerably less generous regime than investors faced only a few years ago. Reductions to allowances and increases in tax rates have increased the tax burden on investors and made careful planning more important than ever.
"Investors will be watching closely for any indication from the government of future changes, but policymakers will also be mindful of the need to encourage investment and long-term saving. What’s more, any changes could result in a change in investor behaviour and have an opposite effect, such as holding off on realising gains should rates increase. For investors, the best approach remains focusing on long-term financial objectives and making full use of available tax-efficient wrappers such as ISAs."
