Brexit boost as HMRC’s tax take hits £575bn

A surge in corporate tax receipts helped push HMRC’s total tax take to a £575bn high for the last 12 months to June 2017, up 6.86% on the previous year, according to analysis from Blick Rothenberg

The firm says HMRC statistics suggested corporate tax receipts rose by 15.5%, to reach £51.5bn. It calculates the rise was actually 20% in the nine months to June 2017, following the Brexit at the end of June 2016 and the fall in the value of sterling. 

Paul Smith, partner at Blick Rothenberg, said: ‘Brexit seems to be working well as far as HMRC’s receipts of corporation tax are concerned. 

‘This has been positive for UK companies exporting goods and services abroad, enabling them to sell more at higher margins, generate greater profits and pay more tax.’

Income tax, which is the largest contributor to the total receipts figure, was up £8bn over the same period, representing a slightly lower increase of 4.77%. Over half of the income tax receipts increase is due to tax taken through the self-assessment regime, which was up by £4.4bn in the last year, a 18.05% increase.

Elsewhere, stamp duty land tax (SDLT) receipts are up £1.1bn on the previous 12 months, a flat figure of 10% growth.

Paul Haywood-Schiefer, assistant manager at Blick Rothenberg, said: ‘SDLT is steadily rising in terms of the amounts collected and has for the first time, broken an average of £1bn a month for the last 12 months, with £12.1bn collected during this time.

‘This has come about due to two main factors being the November 2015 change to how SDLT is calculated and also because of the 3% surcharge on second and additional properties, which came into existence from April 2016.’

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