Higher receipts were recorded between July and September compared to the same period last year, mainly due to the decrease in thresholds for residential main rates and First Time Buyers’ Relief, effective from 1 April 2025.
Inheritance tax (IHT) receipts, meanwhile, were up £0.1bn year-on-year to £4.4bn, according to HMRC’s latest tax and National Insurance contribution (NIC) data.
Overall, gross tax and NIC receipts for April to September were £438.6bn, £32.1bn higher than the same period last year.
Income tax, capital gains tax (CGT) and NIC receipts reached £253.4bn, £25.7bn up on last year.
Will Hale, chief executive of Key Advice and Air, said of the IHT figures: “Today’s numbers continue a familiar trend and highlight once again the government’s commitment to a tax raid at point of death on wealth that people want and expect to be passing to the younger generations.”
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According to Key Advice, £3.7trn of property wealth sits in the hands of the over-55s.
Hale added: “Given the well-documented pressure on UK public finances, it is likely that the November Budget will see further tax measures introduced that will require careful consideration by customers and their advisers if financial plans, in life and in death, are to be fulfilled. This is no longer a problem just for the rich and all families should be seeking advice to understand potential implications and the options available to mitigate the impact.”
The Autumn Budget has been set for 26 November, and there is speculation that there could be changes to inheritance tax gifting allowances, a new tax on homeowners of higher-value properties and National Insurance applied to landlords’ rental income.
According to the Intermediary Mortgage Lenders Association (IMLA), the Treasury’s various proposals around property tax would raise less than £6bn, therefore “failing to raise meaningful revenue and could instead choke off economic growth”.
