Our experts provide commentary on the latest statistics released by HMRC, showing an increase in both the residential property tax take and in receipts generally.
Sean Randall, Stamp Duty Partner
The record for the largest amount of Stamp Duty collected in one month was broken in September with a record breaking £1.32 billion.
Almost twice as many house and flat sales completed in September than would normally complete in that month of the year, 165,720. This, and the reduction of the Stamp Duty holiday, have contributed to a £1.23 billion windfall for Rishi Sunak.
The extent of the frenzy to complete sales before the loss of the holiday is evident. However, the figures for October should make sober reading, as they are expected to show that the holiday has accelerated the timing of sales rather than increase the number.
Paul Haywood-Schiefer, Private Client Senior Manager
HM Revenue & Customs receipts have really bounced back from the Covid downturn. Total receipts in the 12 months to October 2019 (pre-Covid) were £632 billion, after a sharp fall to £562 billion in the year to October 2020, they have now risen again to £683 billion, an increase of 21.6% (£121.4 billion) in the last 12 months.
These figures have been buoyed by a recovery on Income Tax receipts (now £214 billion in the last 12 months) which themselves are up 16.8% (£30.9 billion increase), and of course the VAT receipts up 67% from the previous 12 months (£152.6 billion from £91.3 billion so a £61.3 billion increase) but, which were significantly affected by the Government allowing deferrals during March – June 2020, hence the huge percentage rise here.
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