The UK tax take for April and May 2025 reached £142.8 billion – up £8.6bn compared to the same period in 2024. This growth was driven mainly by higher receipts from income tax, National Insurance contributions (NICs), and VAT, which brought in £6.1bn more than last year.
Income tax, capital gains tax (CGT), and NICs totalled £84bn in May 2025, rising from £77.9bn in May 2024. A third of that growth came from employers’ NICs alone, which jumped by nearly £2bn to £10.66bn, following April’s 1.2 percentage point increase and the reduction of the secondary threshold.
If this trend holds, the Treasury may meet its projected £24bn gain from the NICs hike, helping to plug the estimated £22bn fiscal gap. However, rising employment costs are prompting some businesses to consider job cuts, casting doubt on sustained growth.
CGT receipts rose to £232 million in May 2025, up from £161m a year earlier. However, overall CGT income is still down year-on-year – £12.19bn has been collected since November 2024, compared to £13.7bn over the same period the previous year. The weak mergers and acquisitions market continues to dampen CGT performance.
Stamp duty land tax fell to £918m in May 2025, down from £1.4bn in March, following a rush to complete property transactions before the end of temporary SDLT reliefs. Inheritance tax held steady at £701m in May but is trending higher overall, with £1.5bn already paid this tax year.
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