Treasury rakes in record amount of tax after Rishi Sunak’s stealth raids

NI receipts totaled £157bn, up almost 10pc on the prior year even before higher rates came from April. Capital gains duties paid on investment profits rose a third to almost £15bn, while the Treasury’s take of divisive 40pc death duties reached a record £6bn, driven up by higher house prices.

VAT was up 30pc for the year, with receipts hitting a record £132.5bn, while the pandemic property boom pushed stamp duty land taxes up almost two thirds to a fresh £14bn high.

Feeling the freeze

Katherine Arthur of tax firm Haysmacintyre said the tax haul would rise further still as frozen thresholds failed to keep pace with inflation, which has hit it highest for 30 years, while house prices are still increasing at an annual rate of more than 10pc.

She added that higher NI rates would also result in workers taking home less each month, just as they are faced with covering the cost of higher energy, fuel and food bills.

“With more and more individuals now feeling the pinch of the cost of living crisis, the Chancellor is likely to be under increased pressure to alleviate the enlarged tax burden that ordinary Britons are facing in the months ahead,” she said.

Maintaining the £12,570 personal allowance for income tax at its current level until 2026 will generate an extra £20bn for the Treasury over the next five years alone, documents from the 2021 Budget show. The £12,300 CGT allowance and the main £325,000 IHT tax break will also stay the same.

The Chancellor has already announced council tax rebates to help families with rising bills and NI thresholds will rise to £12,570 from July, offsetting tax rises for many – although anyone earning more than around £40,000 will still pay more.

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