Taxes You Pay Total 37 and Reasoning Behind £3.1m Feeling Wealthy - This Money Podcast
In the UK, individuals paid a substantial amount in taxes during the fiscal year 2024 to 2025. According to recent data, the combined Income Tax and National Insurance contributions from individuals amounted to approximately £355 billion, while other taxes such as Capital Gains Tax, VAT, and excise duties totalled an estimated £20 billion[1]. This brings the total tax paid by individuals to around £375 billion[1], covering both direct taxes (Income Tax, Capital Gains Tax, National Insurance) and indirect taxes (VAT, excise duties).
Recent quarterly data (April to June 2025) show a rise in tax and National Insurance Contributions (NICs) receipts, with increases noted in Income Tax, Capital Gains Tax, NICs, and VAT[1].
As for inheritance tax, the Government is considering the introduction of a wealth tax. However, the article does not provide any information on whether the strategy of giving £250 gifts to 400 people to beat inheritance tax on £100,000 is legal or effective in avoiding inheritance tax[2]. It's also important to note that the article does not discuss the financial implications of this strategy for the giver or the recipients of the gifts.
The decrease in capital gains tax take has implications for the Chancellor's plans[3]. The article does not mention any specific changes or updates to inheritance tax laws, nor does it provide any advice on financial planning or investment strategies related to inheritance tax.
The article also addresses six burning questions about finances that people are asking financial advisers[4]. These questions range from understanding wealth in different areas of Britain to the total tax rate, which is estimated to be around 57%[5].
For those interested in delving deeper into these topics, the This is Money podcast is available on various platforms, including Apple Podcasts, Spotify, and Amazon Music[6].
[1] HMRC quarterly data: https://www.gov.uk/government/statistics/uk-tax-statistics-quarter-2-2025-26 [2] Reader query on inheritance tax: https://www.thisismoney.co.uk/money/bills/article-10690027/Reader-query-inheritance-tax-ways-avoid-it.html [3] Decrease in capital gains tax take: https://www.ft.com/content/3297632a-1b3f-419b-a294-57542281042f [4] Six burning questions about finances: https://www.thisismoney.co.uk/money/bills/article-10689949/Six-burning-questions-finances-asking-financial-advisers.html [5] Total tax burden on individuals: https://www.thisismoney.co.uk/money/bills/article-10690015/How-much-tax-really-pay-UK.html [6] This is Money podcast: https://www.thisismoney.co.uk/podcasts/thisismoney/
- Given the rise in tax and National Insurance Contributions (NICs) receipts during the recent quarter (April to June 2025), it's crucial for individuals to consider their personal-finance strategy, taking into account future direct taxes such as Income Tax, Capital Gains Tax, and NICs.
- As the government is considering the introduction of a wealth tax, those planning their inheritance should stay informed about the legalities and implications of strategies like giving £250 gifts to 400 people to potentially beat inheritance tax, as the article provides no definitive information on its effectiveness or legality.
- As the Chancellor's plans might be affected by the decrease in capital gains tax take, individuals should keep a close eye on any updates or changes to inheritance tax laws, as well as seek professional financial advice for effective investment strategies to manage their personal-finance situation.
