Income tax and National Insurance contribution (NIC) receipts saw a sharp increase in the first quarter of the 2026/27 tax year, boosted by the growing impact of frozen tax thresholds on workers' tax bills, HMRC data showed.

According to today's figures, income tax, capital gains tax and NICs receipts totalled £132.1bn between April and June, up £11.4bn on the same period a year earlier, while PAYE income tax and NICs receipts increased £11.5bn to £132.3bn. Overall tax and NICs receipts reached £227.7bn, up £16.6bn year on year.

Stamp tax receipts also increased by £500m to £5.1bn over the quarter.

The HMRC data comes as speculation continues over whether Prime Minister Andy Burnham's Government could ease frozen income tax thresholds.

Shaun Moore, tax and financial planning expert at Quilter, added: "As HMRC's income tax liabilities statistics published last week highlighted, the number of people paying income tax is projected to rise from 33 million when thresholds were first frozen in 2021/22 to 40.8 million by 2026/27. The number of higher-rate taxpayers is also expected to reach 7.7 million, illustrating how tax bands originally aimed at higher earners are increasingly reaching a much broader group of professionals.

"What began as a temporary measure has evolved into one of the Treasury's most reliable sources of additional revenue. The longer frozen thresholds remain in place, the more dependent the public finances become on the receipts they generate."

The figures also showed capital gains tax (CGT) receipts rose to £192m for June, compared to the £144m recorded in June 2025.

This follows receipts of £168m in May 2026. The figures come after a record year for CGT receipts, which reached £22.2bn in 2025/26, significantly surpassing the previous record of £16.9bn in 2022/23 and the £13.7bn recorded in 2024/25.

Moore stated that in the new Government, CGT is likely to "remain at the centre of political debate".

He concluded: "Recent speculation has included possible changes to the treatment of assets on death alongside wider discussions around property and wealth taxation. Whether any of these proposals ultimately materialise remains uncertain, but the debate itself can influence behaviour. Investors may accelerate or delay disposals depending on how they perceive the direction of travel, making receipts more volatile and harder to predict.

"At a time when the Government is also seeking to encourage greater participation in investing, stability and predictability in the tax system will be important."

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