HM Revenue & Customs’ ("HMRC") tax statistics revealed a 7.22% overall increase, equivalent to £39.3 billion, in its receipts over the last 12 months with all the main taxes (income/corporate/National Insurance Contribution/Stamp Duty Land Tax ("SDLT")/Value Added Tax) contributing to the rise, says Blick Rothenberg.
Commenting on the statistics, released today, Paul Haywood-Schiefer, assistant manager at Blick Rothenberg, said, 'Whilst inflation has hit 3% over the last 12 months, the total tax take has increased by 7.22% in the same period, buoyed by a 19.13% increase in corporation tax which has brought in a further £8.5bn to the Treasury’s coffers and the 4.3% increase in the total income tax receipts contributing another £7.3bn.'
The tax take is also fuelled by a steady increase in SDLT receipts. Paul said, 'UK property transactions remain down 4.68% in the last 12 months, but SDLT receipts have continued to rise with a 16.06% increase over the same period.'
He explained, 'The number of property transactions, comparing year on year still include the anomaly that was created by the March 2016 rush to beat the 3% additional surcharge deadline for second properties. Removing March’s results from both 2016 and 2017, the position is that overall, property transactions are up just over half a percent (0.59%) in the other 11 months of the year.'
The SDLT receipts increase can be attributed mainly to the additional 3% surcharge on second properties which began from April 2016, but it may also be influenced by the December 2014 change in how SDLT is calculated, meaning that for any property sold for over £937,500, the purchaser pays more SDLT than previously under the old slab based approach.
Paul added, 'This may have put purchasers off high value properties initially, but over time, the likelihood is that people will move if they want to, or need to do so, resulting in additional revenue for the Treasury.'
For more information, please contact Paul Haywood-Schiefer.