Tax Take Soars By Almost 10%

Recent HMRC data shows that the Treasury collected 786.6 billion in taxes in 2022/23  a 9.9% increase on last years total of 715.3bn.

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Receipts from income tax, capital gains tax and National Insurance contributions hit 47bn  accounting for over half (57%) of the total tax take. Meanwhile, property price increases mean more families are now over the inheritance tax threshold, which raised a further 7.1bn  around 1bn more than the same time last year.

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Business taxes for 2022/23 also rose significantly, jumping by 17.5bn to 84.9bn. According to HMRC, this was partly due to higher offshore receipts as a result of Russia's invasion of Ukraine and the new energy profits levy.

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The surge in total tax receipts can be largely attributed to recent tax threshold freezes, often dubbed stealth tax rises. The inheritance tax nil-rate band is frozen at 325,000 until 2026, while both the personal allowance and higher rate threshold for income tax will remain frozen until 2028.

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The Office for Budget Responsibility (OBR) predicts that inheritance tax receipts will raise 45bn between 2022/23 and 2027/28. The OBR expects the tax take to increase further in coming years as property prices and wages rise with inflation.