Britain cements its position as the country with the highest property taxes passing £80 billion for the first time | Altus Property Services

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Britain cements its position as the country with the highest property taxes passing £80 billion for the first time

The OECD’s annual revenue statistical publication which presents a unique set of detailed and internationally comparable tax revenue for all OECD countries, confirms, once again, that the UK has the highest property taxes in the world both as a percentage of GDP and overall taxation.

Britain’s property taxes, as a percentage of overall taxes, were however down marginally from 12.7% in 2014/15 to 12.6% in 2015/16 and 2016/17 with Britain still retaining the top spot.

G7 Countries:

The statistical release shows property taxes in the UK were up £2.3bn rising from £74.31bn in 2014/15 to £76.64bn during 2015/16 ranking the UK in 1st place according to the OECD.

However, property taxes as a percentage of GDP, increased marginally from 4.08% to 4.09% and up to 4.19% in 2016/17.

G7 Countries:

The statistical release shows property taxes in the UK were up £2.3bn rising from £74.31bn in 2014/15 to £76.64bn during 2015/16 ranking the UK in 1st place according to the OECD.

In the UK, property taxes include all receipts from Council Tax, Business Rates, SDLT (stamp duty land tax) and LBTT (land and building transaction tax) in Scotland.

The OECD data also indicates that, for 2016/17, property taxes will have risen by a further £4.71bn exceeding the £80billion mark for the first time up to £81.35bn.

Analysis of the OECD data on property taxes shows between 2010/11 and 2016/17 revenue receipts for property taxes will have risen by £19.86bn per annum up 31.9%.

The Chancellor Phillip Hammond announced a number of sweeping reforms around property taxes during his Autumn Budget last week including abolishing stamp duty for first time buyers up to £300,000 as well as changing how business rates rises would be calculated in the future.

Alex Probyn, President of UK business rates at Altus Group, the UK’s largest rates advisor, was upbeat adding, “Last Wednesday’s Budget sees some property taxes starting to go back in the right direction which is encouraging. Comparing revenue forecasts from the Spring and the Autumn Budgets show tax receipts from both Stamp Duty and Business Rates falling £9.5billion over the next 5 years which is a positive.”

“There’s no denying the attractiveness of property taxes for Government. Collection rates are high and they are increasingly hard to avoid. A building is harder to hide than a profit.”

“We have seen a policy preference in the UK away from personal and corporate taxes on income. We should never forget the substantial contribution that both business and individuals make to fund public services through their property.”

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