HMRC’s tax take has continued to rise in October, with receipts £200m higher than the same period last year.
During the period:
- Income tax receipts for October hit £21.7bn
- Capital gains tax (CGT) receipts hit £230m in October
- Inheritance tax receipts for April 2025 to October 2025 were £5.2bn
Sarah Coles, head of personal finance at investment platform Hargreaves Lansdown, said the latest income tax receipts show “just how effective” frozen tax thresholds have been as a stealth tax.
“October sits squarely between the peak months for income tax (December and July), so it’s a reasonable indicator of trends over a longer period. It demonstrates the profound impact of frozen income tax thresholds, pushing more people into paying more tax at a higher rate,” she said.
CGT changes in the Budget last year pushed people to realise gains and pay the tax early, but, this year, speculation has focused on other areas and this surge has been less pronounced.
“However, receipts have been rising since June and hit £230m” Ms Coles said.
Helen Morrissey, of Hargreaves Lansdown, added: “Inheritance tax receipts continue to surge and remain on track for another record year, and there are whispers around the forthcoming Budget that we may see further tweaks. Ideas include a cap on lifetime gifts or tweaks to nil rate bands.”
