December 2024 saw tax receipts rise across the board, with capital gains tax (CGT) showing the most dramatic increase following Labour’s first Budget. CGT receipts for December 2024 reached £335 million, more than double the £156m collected in December 2023. Over the last quarter, CGT receipts hit a record £808m, a 60% jump from £505m in the same period last year.
The uptick began in October 2024, even before the Budget, as businesses moved to pre-empt expected CGT hikes. October and November alone saw CGT receipts rise by £130m compared to 2023. Overall tax receipts between April and December 2024 reached a record £607.3 billion, an increase of £19.4bn year-on-year.
National insurance contributions (NICs) dropped slightly despite the Conservative Government’s employee NICs cut from 12% to 10%. December 2024 NICs fell by just £171m to £13.99bn, compared to £14.17bn in December 2023.
Income tax receipts also surged, rising by £3bn in December to exceed £22bn. Total tax receipts for the month surpassed £70.1bn, up £5bn from December 2023 and £46.4bn higher than pre-pandemic levels in December 2019, reflecting the impact of fiscal drag.
Inheritance tax (IHT) continued its upward trend, hitting £620m in December. For the tax year to date, IHT receipts total £6.3bn, a £600m (10%) increase on last year, cementing its status as one of the UK’s most burdensome taxes.
Talk to us about your finances.