HMRC tax receipts hit £391.6bn – Mortgage Strategy
It was another bumper haul for HMRC between April and August as it collected £391.6bn in total tax and national insurance contributions (NICs).
This figure was £24.9bn higher than it collected in the same period last year.
Capital gains tax (CGT) receipts were £198m, compared with £190m in August 2025, while inheritance tax (IHT) receipts rose by £0.1bn on the previous year to £3.8bn.
PAYE income tax and NIC receipts for April to August 2026 were £214bn, which is £16.9bn higher than the same period last year.
In response to these figures, AJ Bell head of personal finance Sarah Coles said: “The taxman helped himself to an almighty chunk of our income, savings and investments, and cut a multi-million pound slice of estates after people passed away”.
“Frozen tax thresholds, hikes to investment taxes, and cuts to allowances mean we’re on track for yet another record tax year. However, CGT bucked the trend, proving that hiking a tax rate doesn’t always mean a bumper cash haul,” she added.
She highlighted that while August is typically a slow month for CGT receipts, it’s a busy one for tax speculation: “We paid £198m in August, up from £190m in August 2025. However, since April the Treasury has taken less in CGT than a year earlier.”
Coles believes it’s a “useful demonstration that when it comes to CGT, tightening the screw doesn’t necessarily generate more tax, because people will change their behaviour to avoid a hefty tax bill”.
“We could still see a surge at the start of 2027, as CGT receipts always spike in the new year, but so far the tax take is lagging.
“It appears that the dramatic cuts in the annual exempt amount and the hikes in the rate for stocks and shares haven’t bolstered the Treasury coffers significantly,” she added.
Acknowledging rumours that the government may still be considering equalising CGT with income tax rates at the upcoming Budget, Coles warned that anyone pushing for such a move might want to bear these latest figures in mind.
Rachael Griffin, tax and financial planning expert at Quilter, agreed that these figures provide an important reality check against the CGT rumours circulating in Westminster.
“On paper, such a move could significantly increase the amount of tax due on investment gains and potentially deliver a sizeable boost to Treasury revenues. However, CGT is one of the most behaviourally sensitive taxes in the system.
“Monthly receipts can be highly volatile and investors often have considerable control over when gains are realised. Faced with higher rates, some may accelerate disposals ahead of any changes while others may simply hold assets for longer,” she said.
Turning to IHT, Mattioli Woods managing director of wealth Amit Joshi stressed that “Rising property values and inflation are quietly turning what was once a tax for the wealthy into a bill for ordinary households”.
“What is most concerning isn’t the tax itself, but the lack of awareness. Families often only realise the impact when it’s too late to act. Estates that would have paid nothing a decade ago are now automatically liable,” he warned.
He believes IHT has become a planning issue by stealth, and the cost of inaction is measured in lost choices, rushed decisions and unnecessary tax.
“Regularly reviewing wills and estate plans, and seeking professional financial advice, is no longer optional. It’s essential to protect family outcomes, preserve control and ensure hard-earned wealth goes where it was intended, not where it happens to land,” Joshi said.
