The latest tax data for the first months of the 2025\/26 tax year shows mixed trends.<\/p>\n
<\/p>\n
Employers\u2019 National Insurance contributions (NICs) are sharply up, rising by nearly \u00a32 billion in a single month, while Capital Gains Tax (CGT) receipts have fallen compared to the previous year.<\/p>\n
Property taxes and Inheritance Tax (IHT) also show notable changes.<\/p>\n
These movements raise important questions for both business owners and individual taxpayers. Here is what is happening, and what to consider now.<\/p>\n
In May 2025, employers paid \u00a310.66 billion in NICs, nearly \u00a32 billion more than in the same month last year.<\/p>\n
This increase follows the 1.2 per cent rise in Employers\u2019 NICs and a reduction in the threshold from April.<\/p>\n
For many businesses, higher NICs add to an already challenging environment of rising costs.<\/p>\n
The impact will not be felt evenly. Some sectors such as retail, hospitality and care, where employment costs form a larger share of overheads, will feel this more acutely.<\/p>\n
For business owners, reviewing employment costs and forecasting how these will develop over the rest of the year is a priority.<\/p>\n
Reliefs such as the Employment Allowance may help, but a more detailed understanding of your cost base is key.<\/p>\n
CGT receipts have declined in recent months, with \u00a312.19 billion collected between November 2024 and May 2025, down from \u00a313.7 billion the previous year.<\/p>\n
A weaker M&A market is a major factor, as is the impact of last autumn\u2019s Budget changes. Timing is also important, as CGT is often paid months after transactions complete.<\/p>\n
There is still a possibility that CGT receipts could rise later this year, as disposals brought forward ahead of the last Budget come through.<\/p>\n
However, there is also speculation that the Chancellor may look again at CGT rates or allowances in the next Budget.<\/p>\n
Investors and property owners should consider whether now is the time to review their CGT position and broader tax planning.<\/p>\n
Stamp Duty receipts fell in May, down 30 per cent on earlier peaks, following the end of the temporary SDLT relief.<\/p>\n
Inheritance Tax (IHT) remains steady, \u00a31.5 billion paid in the first two months of this tax year but continues to rise in overall terms.<\/p>\n
More estates are being caught by frozen thresholds and rising property values.<\/p>\n
These tax figures highlight how quickly things can change, sometimes in opposite directions.<\/p>\n
For employers, understanding and managing rising NICs is now critical.<\/p>\n
For asset owners and investors, a fresh look at CGT and IHT exposure may be wise ahead of the next Budget.<\/p>\n
If you would like to discuss how any of these changes could affect you or your business, we are here to help. Contact us today. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The latest tax data for the first months of the 2025\/26 tax year shows mixed trends.<\/p>\n","protected":false},"author":2,"featured_media":6444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6441"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6441"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6441\/revisions"}],"predecessor-version":[{"id":6442,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6441\/revisions\/6442"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/6444"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}