The total tax revenue has increased by PS90.5 billion over the 12 months from June, which is an increase over the previous year. The top consultancy and tax firm Blick Rothenberg.
Paul Haywood-Schiefer the Senior Manager of the firm , said: “Total tax receipts remain very strong – with a PS90.5 billion increase over the last 12 months.”
He also said: “HMRC have received PS737 billion over the course of a 12 month period, which is a substantial increase compared to the past few years. With inflation in the picture, we may have higher take in taxes on fuel, VAT and tax revenues that could reach PS800 billion. This impressive performance could allow the new Prime Minister and the Chancellor a bit of flexibility on tax cuts to come in the near future.”
Paul stated: “All taxes are contributing to this rise and this is reflected in HMRC having records of inheritance Tax (IHT) at the end of June, with PS726 million being collected. This is 24.1 percentage more that the prior record PS585 million that was set in March. It appears to be on the upwards side for the past 6 months. It’s still just 1% or less of the total tax revenue and just 10% of tax on corporation revenues, which means it’s not going to set the world on fire. The government has long fought to make more money from inheritance Tax, despite the 40% tax rate.”
There are a variety of possible causes for the rise. However, like IHT receipts, even though PS726 million may sound like a lot of money, an enormous inheritance of the deceased could have a significant impact on the amount of money received. IHT is due at the the 6th month following death of the individual. What we need to look for here is the receipts that relate to people who passed away on December 20, 2021. However, this could include estate receipts from years earlier that are late in paying HMRC and, therefore, one large complicated estate, which takes some time to process and could end up paying late due to the fact that they were not able to come to a consensus on numbers.”
“This tax is typically payable at 40% of the available no rate band, currently, PS325,000. This could be increased by the existence of a deceased spouse’s non-used nil rate band, or through a transfer. Tax rates may be reduced on gifts made during the prior seven tax years, and when 10 percent of the estate’s worth is donated to charities. So, to earn PS726 million in tax, we’re considering just PS1.8 billion worth of assets taxed during the month. That’s just PS350 Million more than what would be taxed under the previous year’s record.”