The latest HMRC tax figures

Currie said: “Frozen tax thresholds are doing the heavy lifting for the Treasury. As wages rise, more people are being pulled into paying more tax, even when their spending power hasn’t kept pace. In an increasingly unforgiving tax system, making your pension and ISA allowances work harder matters more than ever.

“Behind the headline numbers is a revealing snapshot of how Britain earns, spends, saves and pays tax. Here are four key takeaways for UK households:

“1. Inheritance tax (IHT) is already breaking records. Inheritance tax brought in £3.2 billion in the first four months of this tax year, £100 million more than last year, with June’s receipts the highest on record. With most unused pension funds and pension death benefits due to be brought into estates for inheritance tax purposes from April 2027, more families will need to consider pensions as part of their wider estate planning.

“2. Property taxes are bringing in more too. Stamp tax receipts reached £6.9 billion between April and July – £500 million more than last year. For aspiring homeowners already grappling with high house prices and living costs, the tax cost of buying a home is another number that needs to be built into the budget.

“3. Britons are still taking to the skies. Household finances may be squeezed, but we’re still getting on planes. Air Passenger Duty receipts hit a record high in July, with HMRC pointing to the broader rise in receipts as a likely sign of continued growth in the travel industry. At a time when retail sales are under pressure, households may be changing where they spend rather than simply shutting their wallets altogether.

“4. Electric cars are changing the tax base. Changing consumer behaviour is also reshaping the nation’s finances. HMRC says fuel duty receipts have generally declined compared with earlier periods since April 2024, primarily because growing electric and hybrid car use has reduced the miles travelled by diesel cars. As Britain moves away from petrol and diesel, the way governments tax motorists will inevitably have to evolve too.

“These figures are a reminder that tax touches almost every part of our financial lives – what we earn, save, invest, inherit and spend. We can’t control where tax policy goes next, but we can make sure we understand the rules and make the allowances available to us work as hard as possible.”