HMRC’s latest statistics show an overall increase of 6.6% in total tax receipts in the last 12 months to May 2017.
Paul Haywood-Schiefer, Assistant Manager at Blick Rothenberg, said: “Whilst reigning uncertainty over the shape of the Government and Brexit negotiations hangs in the air, pre-election receipts for the treasury are as buoyant as they have ever been with £572 billion paid over to the Treasury in the last 12 months.
“The total tax receipts for the 12 months to the end of May (2017) are up 6.6% on the previous year, which is 3.7% higher than the Consume Price Index (CPI) rate of inflation of 2.9% over the same period. These receipts are being boosted by a steady 4.17% increase in the income tax take and a 9.57% increase in National Insurance Contributions (NIC). Corporation tax is also up by 14.7%.”
He added: “May was notable for a landmark in the tax receipts from Inheritance Tax (IHT), as in the last 12 months a total of more than £5 billion (£5,113 billion) was raised from this tax. This is momentous, as this is the first time that the receipts for IHT for a 12 month period have exceeded £5 billion.
“IHT receipts have historically been fairly modest, but is has been the Government’s intention to raise more revenue from IHT. Over the last few years, the Government has introduced several IHT measures, such as restricting the deductibility of certain debt, and these measures, together with rising house prices are now beginning to bear fruition. We expect that the Government will see a steady growth in IHT take over the forthcoming years”
“It will be interesting to see what impact, if any, the election has on the overall receipts over the next couple of months.”
For more information please contact Paul Haywood-Schiefer