Britain’s reliance upon property for tax revenues shows no sign of abating with the latest OECD’s annual revenue statistics revealing, last year, £1 in every £8 raised in taxes came from property with total revenue up £4 billion.
Property taxes, as a percentage of overall taxation, stayed constant at 12.6% for 2017/18, the highest across the European Union and more than double the EU average of 4.6%.
Despite the U.K. losing its unenviable title of having the highest property taxes across the entire developed world, falling to second as revenues were reclassified in the U.S., the squeeze by the Government on home owners and non domestic premises continues as revenue from property taxes across the U.K. continues to soar having risen £23.6 billion up 38% since 2010 up to £85.4 billion last year for 2017/18 according to a detailed analysis by Altus Group.
In the UK, property taxes include all tax receipts from council tax, business rates, SDLT (stamp duty land tax) and LBTT (land and building transaction tax) in Scotland.
Robert Hayton, Head of U.K. business rates at Altus Group, said:
“There’s no denying the attractiveness of property taxes for Government to fund local services. Collection rates are high at 97.1% for council tax and 98.4% for business rates. They are hard to avoid as you simply can’t hide property but the tax burden on property is simply too high particularly for commercial premises given the changing nature of the economy.”
Despite measures announced by the Chancellor at the Autumn Budget aimed at the retail and hospitality sectors, the OBR forecast revenue from business rates for non domestic properties will still rise by £200 million next April to £30.9 billion for 2019/20.