Total tax take soars to £310.9bn

The latest figures released by HMRC show tax take from April to August 2022 totalled £310.9bn, £31bn higher than in the same period in 2021.

Two of the main drivers behind this increase are income tax and inheritance tax receipts.

Tax receipts from income tax, capital gains tax (CGT) and National Insurance contributions (NICs) increased by £21.9bn to 174.6bn.

Inheritance tax reached £2.9bn, an increase of 11% (£300m) from the same period in 2021. This significant rise in inheritance tax can be attributed to rapidly rising property prices and tax thresholds. Receipts in inheritance tax totalled £575m in August alone.

Meanwhile, business taxes increased by 23% (£4.7bn) between April and August 2022, totalling £24.7bn. This increase can be partly explained by company profits recovering from the economic impact of the Covid-19 pandemic.

VAT reached a total of £67.4bn, an increase of £400m compared with the same period a year earlier. HMRC attributes this increase to high levels of inflation and the subsequent changes in consumer expenditure.

Receipts for stamp duty land tax increased by 29% to £8.9bn, £2bn higher than in the same period last year.

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