HMRC Tax Receipts: What the Latest Figures Mean for You and Your Family

At a glance:  HMRC has published its latest tax receipts — and the numbers show a clear trend: the government is collecting more tax from more people, especially through income tax, capital gains tax (CGT) and inheritance tax (IHT).  Several upcoming rule changes mean the tax net is set to widen further in 2027.

What’s happening, why it matters, and what you should consider ahead of next year’s reforms ...

1.  Total tax take is rising — and faster than expected

Between April and July 2026, HMRC collected £322.7bn, up £19.1bn on the same period last year.  The biggest contributors were:

• Income tax, CGT and National Insurance: £189.8bn (+7%)

• PAYE income tax: £173.2bn

• Business taxes: £31.6bn (+13%)

• VAT: £64.8bn

• Stamp duty: £6.9bn (+8%)

• Inheritance tax: £3.2bn (record June receipts)

This reflects strong employment, higher corporate profits, and frozen tax thresholds pulling more people into higher tax bands.

2.  Capital Gains Tax: record receipts and more to come

CGT receipts remain elevated after a record 2025/26 tax year.  July alone saw £194m collected, up from £165m last year.

Why CGT is rising:

• Higher CGT rates introduced in the Autumn Budget 2024

• Fiscal drag: thresholds frozen while asset values rise

• More people selling property, investments and business assets

The Office for Budget Responsibility expects CGT receipts to reach £34.9bn by 2030/31.

Impact: Higher CGT bills risk making the UK less attractive for investors, entrepreneurs and internationally mobile families — especially compared with jurisdictions offering lower rates on gains.

3.  Inheritance Tax: more families are being pulled in

IHT receipts hit £3.2bn in the first four months of the tax year — the highest on record for June.

Drivers include:

• Frozen thresholds until 2030–31

• Rising asset values

• Higher levels of wealth transfer following recent deaths

• Restrictions to agricultural and business reliefs (April 2026)

But the biggest change arrives next April.

From April 2027: unspent pension assets will be subject to IHT

This is a major shift.  Pension pots — often one of the largest family assets — will now form part of the estate for IHT purposes.

For beneficiaries of those aged over 75, the tax burden could be severe:

1. Pension suffers IHT at 40%

2. Beneficiary withdraws funds and pays income tax at their marginal rate

3. In some cases, beneficiaries may keep little more than a third of the original pension value

Client impact: Many families who have never considered themselves “wealthy” will now fall into the IHT net.

4.  Stamp duty: receipts up despite a subdued housing market

Stamp duty receipts rose to £6.9bn, partly because:

• Buyers rushed transactions ahead of SDLT changes in April 2025

• 2025 saw fewer transactions, creating a lower comparison base

• 2026 housing market remains subdued

This has intensified calls for Chancellor Healey to scrap or overhaul stamp duty in his first Autumn Budget.

5.  What you should consider now

With CGT and IHT pressures rising — and pension assets soon to be taxable — we urge you to act early.

Key planning steps:

• Lifetime gifting to reduce estate size

• Using the normal expenditure out of income exemption

• Reviewing beneficiary nominations on pensions

• Considering whole‑of‑life policies written into trust

• Ensuring business and agricultural relief eligibility is up to date

• Reviewing investment structures to manage future CGT exposure

6.  The bottom line

The government’s tax take is rising — and upcoming rule changes mean many more families will face CGT and IHT bills in the years ahead.  Early planning is now essential, particularly for people with:

• Larger pension pots

• Property wealth

• Business or agricultural assets

• Significant investment portfolios

Contact Book Tel/Vid Call Calculators  Our Fees