Collecting Record Tax Receipts Through Property Taxation

The latest HM Revenue and Customs data reveal that the UK government raked in more money this year through stamp duty, income tax, and inheritance tax. Stamp duty collection increased by 0.7 billion more than the year before, touching 19.3 billion between April 2022 and March 2023. Inheritance tax earned the government 7.1 billion over the same period, 1 billion higher than the year before. The increase was boosted by rising asset values. And PAYE Income Tax and NIC1 receipts hit 378.2 billion. This is a massive increase of 40.2 billion more than the same period the year proceeding.

Rising Tax Burden for UK Citizens

Financial analysts predict that the tax burden on UK citizens will increase as a series of government measures announced earlier begin to take effect, including many cuts and freezes. These changes are expected to push up the overall tax receipts in the coming years, with an emphasis on property-related taxes.

The Impact of Capital Gains Tax Changes

One significant change is the government’s move to alter Capital Gains Tax rules, which will have far-reaching effects. The annual exemption from the tax will fall from £12,300 to £6,000 in 2023/24. It is expected to drop further to £3,000 in 2024/25.

Potential Inheritance Tax Changes

There are also rumors that Chancellor Jeremy Hunt may propose a reduction in the 40 percent rate on inheritance tax above £325,000 ahead of the next general election. This potential move could further impact property-related taxes and the wealth of high-net-worth individuals.

Increased Property Taxation Driving Record Government Revenue

The UK government has seen record tax receipts through property-related taxes, with stamp duty and inheritance tax contributing significantly to the increased revenue, boosted by rising asset values.

Potential Changes in Capital Gains and Inheritance Tax

The government is considering changes to Capital Gains Tax exemptions and potential reductions in inheritance tax rates, which could further affect property owners and high-net-worth individuals in the future.