The number of property transactions has hit its lowest for any quarter since 2015, but general tax take is up across the board fuelled by Income Tax, Corporation Tax and Stamp Duty Land Tax ("SDLT"), HM Revenue & Customs' ("HMRC") latest statistics have revealed.
Paul Haywood-Schiefer, assistant manager at accounting, tax and advisory practice Blick Rothenberg, analysed the stats and said, 'Year on year comparisons show that UK residential property transactions have been slowing down for the last four months and it is no surprise to see the first quarter’s statistics being the worst quarter since 2015.
Although the first quarter is generally the slowest one in the market, it is likely that expected interest rate rises are making potential buyers wary of committing their funds. It will be interesting to see how the next quarter plays out and whether this trend continues.'
He added, 'However, SDLT receipts for the 2017/18 tax year have been very buoyant, adding £12.9bn to the Government’s coffers. This is a 9.69% increase compared to the 2016/17 tax year SLDT tax take, which was £11.7bn.
Commenting on the stats in general, Paul noted that HMRC’s total tax take for the 2017/18 tax year was £594.3bn and showed an increase of 4.39% (just under £25bn) compared to the previous tax year.
He said, 'The greatest contributor to this is always income tax, which accounts for 30.5% (£181bn) of the total tax take and had an increase of 2.25% (approx. £4bn) compared to the previous year.
He added, 'Despite a fall in the main rate to 19%, corporation tax generated £54.6bn in tax revenue with an increase of 10.28% (just under £5.1bn) compared to 2016/17.'
For more information, please contact Paul Haywood-Schiefer.