Quilter says fiscal drag drives UK tax receipts higher ahead of Budget
EWU•Quilter tax expert Rachael Griffin said fiscal drag boosted UK tax receipts ahead of the Budget. PAYE income tax and National Insurance receipts reached £253.5 billion from April to September, up £18.2 billion year over year.
1. Tax receipts rise
Rachael Griffin, Quilter’s tax expert, said on October 21 that fiscal drag was boosting receipts ahead of the Budget. PAYE income tax and National Insurance receipts reached £253.5 billion between April and September, an increase of £18.2 billion from a year earlier. Inheritance tax receipts rose by £300 million to £4.7 billion, while capital gains tax receipts edged up £1 million to £1.13 billion.
2. Pension tax changes
Bringing most unused pension funds and death benefits into inheritance tax from April 2027 is expected to sharply increase future receipts. Budget speculation may have prompted earlier capital gains tax disposals, the brief said.
