23 April 2026
If you are covering the latest
HMRC tax receipt data, please see the following comment from
Rachael Griffin, tax and financial planning expert at Quilter:
"Today’s figures rounding off the tax year show the government is continuing to lean heavily on stealth taxes to support the public finances. While the strength of receipts will offer some short‑term reassurance for the Chancellor, it comes at a time when household finances are under renewed pressure from another period of higher inflation following the start of the war in Iran.
Inheritance Tax hits another record, with pressure set to intensify significantly
“Inheritance Tax receipts for April 2025 to March 2026 are £8.5 billion, which is £0.2 billion higher than the same period last year, marking another record‑breaking year for the tax take.
“Frozen thresholds remain the key driver. The £325,000 nil‑rate band and £175,000 residence nil‑rate band are fixed until 2031, while property prices, particularly in London and the South East, mean the value of the family home alone is often enough to push estates into IHT, leaving little room for other assets to be passed on tax‑free.
“Further strain is already building. Restrictions to Agricultural Property Relief and Business Relief from April 2026 will increase exposure for business owners and farming families, while unused pension pots will fall within the scope of Inheritance Tax from 2027, bringing what has long been the largest asset outside the estate firmly into charge. This policy change alone will turbo-charge receipts for years to come.
“What was once seen as a tax on only the wealthiest families is now firmly a middle‑income issue. With thresholds frozen and further policy changes still feeding through, IHT bills are becoming harder to mitigate, making early planning and professional advice increasingly important.
Income tax and NICs continue to do the heavy lifting
“PAYE income tax and National Insurance contributions receipts for April 2025 to March 2026 are £471.5 billion, which is £48.5 billion higher than the same period last year. Despite only modest real improvements in pay, the tax take from working households has continued to climb.
“This reflects the Chancellor’s decision at the last Budget to maintain the freeze on income tax thresholds. As wages rise to keep pace with inflation, more people are being dragged into higher tax bands, meaning a growing share of any pay rise is lost to tax. For many households, higher nominal wages are translating into little or no improvement in living standards.
“With the conflict in Iran pushing up oil prices and feeding through into fuel and energy costs, there is a real risk the UK enters another inflationary phase. Combined with frozen thresholds, that creates a particularly punishing mix, where rising prices and tax bills squeeze household finances from all angles.
Capital Gains Tax hit huge record high
“Capital Gains Tax receipts for April 2025 to March 2026 are £22.2 billion, which is up from £13.7 billion collected in last tax year, making this by far the largest CGT take on record.
“The previous high point was in 2022–23, when CGT receipts came in at just under £17 billion. That puts the scale of this year’s increase into sharp perspective. In 2020–21, CGT raised £11.1 billion, underlining how dramatically the tax has been reshaped in a relatively short period.
“This surge reflects a combination of a supportive investment environment and recent policy changes. Equity markets have been strong and asset prices have recovered well over the past year, which has naturally increased the pool of gains available to be realised.
“However, policy has clearly amplified that effect. The annual exempt amount has been cut from £12,300 to £3,000, while CGT rates on shares and other investments were raised in October 2024 from 10% and 20% to 18% and 24%, significantly increasing the tax due on each disposal.
“That combination appears to have encouraged some investors to bring forward decisions and crystallise gains sooner than planned, boosting receipts this year. Whether this marks a new, structurally higher level of CGT revenue or simply a one‑off response to a policy shock remains to be seen.
“As the new regime beds in, some investors may choose to sit on their hands, hold assets for longer or rely more heavily on tax wrappers. If that happens, CGT receipts could prove more volatile rather than consistently higher in the years ahead."
