Income tax receipts in July reached £32.7bn, the highest for that month since records began in 2008, highlighting the government's dependence on frozen tax thresholds. Over the past year, total income tax receipts rose to £281bn, an increase of £20.7bn or 8%. Rachel Reeves, the Chancellor, has not indicated plans to raise tax thresholds but has ruled out increasing headline rates. The tax burden is expected to reach its highest level in 70 years, with potential adjustments to capital gains and inheritance tax being considered for the upcoming budget on October 30. Meanwhile, inheritance tax has generated an additional £200m this year, with receipts for April to July 2024 reaching £2.8bn, compared to £2.6bn during the same period last year. This increase is attributed to rising asset values, which have elevated the worth of estates.
