The Treasury has raked in £13.8 billion in capital gains tax, stamp duties and inheritance tax over the past six months – as Rachel Reeves prepares to squeeze more out of them.
That is an increase of £1.4 billion on a year earlier and comes as speculation mounts that the Chancellor will target those same taxes in next week’s Budget.
It includes a £400m surge in revenues from inheritance tax – as a freeze in the rate of death duties means more grieving families are dragged into having to pay the levy.
And there was also evidence of a spike in capital gains tax likely to have been driven by owners of property and other assets selling up before an expected rate increase is announced by Ms Reeves.
Labour yesterday signalled more pain as Chief Secretary to the Treasury Darren Jones warned that ‘difficult decisions’ would be needed in the Budget – after official figures also pointed to a surge in public borrowing.
The Treasury has had £13.8 billion in capital gains tax, stamp duties and inheritance tax over the past six months – as Rachel Reeves (pictured) prepares to squeeze more out of them
Labour yesterday signalled more pain as Chief Secretary to the Treasury Darren Jones warned that ‘difficult decisions’ would be needed in the Budget – after official figures also pointed to a surge in public borrowing
Borrowing – which is the shortfall between the government’s tax revenues and spending – rose to £79.6 billion for the first six months of the financial year, overshooting official forecasts by £6.7 billion (file image)
The increase was partly due to surging public sector pay, the Office for National Statistics (ONS) said – even before pay hikes announced by the government over the summer come into effect.
Borrowing – which is the shortfall between the government’s tax revenues and spending – rose to £79.6 billion for the first six months of the financial year, overshooting official forecasts by £6.7 billion.
The deterioration in public finances has intensified speculation Reeves will target so-called ‘wealth taxes’ – on property or other assets – in the Budget. Figures yesterday showed they are already pouring into Treasury coffers on a vast scale.
Inheritance tax receipts for last month totalled £736m and £4.3bn for the first six months of the financial year, £400m more than the same period a year ago.
Stamp duty on land – a tax on property purchases – generated £1.1bn in September and £6.4bn from April to September, £400m up on a year earlier.
And stamp duty on shares – which many in the City want to see scrapped to deliver a boost to UK markets – generated £263m in September and £2.1bn over the past six months, £500m up on a year earlier.
Capital gains tax brought in £192m last month and just over £1bn for the six months, £100m up on 2023/24. Revenues from this tax are mostly generated in January and are forecast to total £15.2bn for the financial year as a whole.