Four reasons why HMRC had a bumper year
By International Adviser, 17 Jul 17
Latest figures from the UK tax office show that it netted £29bn ($37.6bn, €32.9bn) in the past year just by cracking down on tax evaders, with overall tax coffers up 7% to £580bn in 2016/17. Here’s a breakdown of why HMRC is having a record year in revenues, according to its annual report.
In the tax year to April 2017, HM Revenue & Customs reported that total revenue had increased by £38.1bn (7.1%) to £574.9bn.
Stamp duty, which makes up 3% of total revenue, rose by 6.2% due to the introduction of a higher rate for additional properties and the continuing increase in UK house prices.
Capital Gains Tax (1.5% of total revenue) also surged by a record 15.1% due to the average gain per disposal of assets increasing by around 16%.
A number of other taxes, including inheritance tax, also contributed to the healthy boost to revenues.
Income tax, which makes up 30% of total revenue, and NI Contributions (21% of revenue) were both up 5.3% due to increases in employment levels, higher wages and changes to the way NI Contributions are calculated for state pensions.
Revenues from corporation tax, which make up 9% of total revenue, spiked by 12.3% due to rising company profits.
Tags: HMRC
