The first data from the new tax year suggests the tax landscape is moving in unexpected ways.
Employers’ National Insurance contributions (NICs) are up sharply, while receipts from Capital Gains Tax (CGT) are falling.
Property taxes are showing renewed volatility, and Inheritance Tax (IHT) liabilities continue their upward trend.
May 2025 saw a striking £10.66 billion in Employers’ NICs collected, an increase of nearly £2 billion on the same month last year.
This reflects the 1.2 per cent rate hike and a lower threshold introduced from April.
The additional costs will weigh heaviest on sectors with large workforces, such as hospitality, care and retail.
Businesses should act now to model future employment costs and review opportunities such as Employment Allowance to help ease the burden.
CGT receipts have dropped to £12.19 billion for the six months to May 2025, from £13.7 billion the previous year.
This is partly driven by a quieter M&A market and delayed timing of payments after deals complete. Adjustments made in last autumn’s Budget also play a role.
With talk of potential further changes to CGT in the Chancellor’s next Budget, both investors and property owners should consider their current position, and whether now is the right time for further disposals or tax planning.
The tax outlook is changing, sometimes in conflicting directions. Now is a good time for businesses to assess employment costs and for individuals to take stock of CGT and IHT risks.
If you would like to explore how these changes could affect you or your business, get in touch with our tax professionals today.
