The first months of the 2025/26 tax year show mixed movements across key taxes.
Employers’ National Insurance contributions (NICs) have risen sharply, while Capital Gains Tax (CGT) receipts have fallen. Property taxes and Inheritance Tax (IHT) are also showing signs of change.
In May 2025, Employers’ NICs totalled £10.66 billion, an increase of nearly £2 billion on the same month last year.
This follows an increase in NIC rates of 1.2 per cent from April, alongside a reduction in the threshold.
The result is rising employment costs, which will affect some sectors more than others, particularly retail, care and hospitality.
Businesses should now be reviewing how this will affect overall costs for the year. It is also worth checking eligibility for reliefs such as the Employment Allowance.
CGT receipts fell to £12.19 billion between November 2024 and May 2025, down from £13.7 billion in the previous year.
A quieter mergers and acquisitions market and the effects of last year’s Budget are contributing factors.
Delays between transactions and tax payments also mean some receipts may yet appear later in the year.
There is ongoing speculation that CGT rates or allowances could be reviewed in the next Budget. Investors may wish to revisit their plans while current rules are in place.
Stamp Duty receipts were 30 per cent lower in May compared to previous peaks, as the market adjusts following the end of temporary SDLT relief.
Inheritance Tax (IHT) remains steady, with £1.5 billion collected in just two months.
More estates are being brought into scope as property prices rise against frozen thresholds.
Rising NIC costs and potential CGT and IHT changes mean that early planning could help businesses and individuals avoid surprises later in the year.
