NI’s revenue is £ 157 billion, up almost 10% from the previous year, even before higher rates come in April. Duties on capital gains paid on investment gains rose by a third to almost £ 15 billion, while the Treasury’s takeover of 40 per cent of the death toll reached a record £ 6 billion driven by higher house prices .
VAT rose by 30% for the year, with receipts reaching a record £ 132.5 billion, while the pandemic property boom pushed state taxes on land by almost two-thirds to a new £ 14 billion.
Feeling frozen
Catherine Arthur of tax firm Haysmacintyre said tax collection will rise further as frozen thresholds fail to keep pace with inflation, which has been at its highest for 30 years, while house prices are still rising at an annual rate of over 10 percent.
She added that higher NI rates would also lead to workers returning less each month, just as they face the cost of higher energy, fuel and food bills.
“As more and more people now feel the pinch of the cost of living crisis, the chancellor is likely to come under increased pressure to ease the increased tax burden facing ordinary Britons in the coming months,” she said.
Maintaining the personal income tax allowance of £ 12,570 at its current level until 2026 will generate an additional £ 20 billion for the treasury over the next five years alone, documents from the 2021 budget show. The CGT allowance of £ 12,300 and the basic Tax relief of £ 325,000 IHT will also remain the same.
The Chancellor has already announced that municipal tax rebates to help families with rising bills and NI thresholds will rise to £ 12,570 from July, offsetting the tax increase for many people – although anyone earning more than around £ 40,000 , will still pay more.
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