By Altus Group | December 8, 2020

Tax revenues from property topped £90 billion for the first-time last year according to the annual revenue statistical release from the Organisation for Economic Co-operation and Development.

The OECD say property taxes across the UK rose to £90.6 billion during the last financial year for 2019/20 up from £88.4 billion during 2018/19.

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.

Further analysis from the real estate adviser Altus Group shows that tax revenues from property have risen by 46.6% since 2010 with £757.8 billion having been collected across the UK during the last decade.

Total overall tax revenues for 2019/20 rose to £731.1 billion in the UK, up £25.9 billion on the previous financial year, with property taxes in the UK accounting for 12.4% of overall taxation – around £1 in every £8 of all taxes collected – the highest in the developed world.

Top 5 OECD Countries

Country

Currency

Total Tax Revenue

Taxes On Property

Property Tax % Of Overall Tax

United Kingdom

Pound Sterling, Billions

731.06

90.55

12.4%

United States

US Dollar, Billions

5,243.79

634.08

12.1%

Canada

Canadian Dollar, Billions

770.76

89.19

11.6%

Korea

Won, Billions

523,985.00

59,732.00

11.4%

Israel

New Israeli Sheqel, Billions

428.70

43.44

10.1%

Altus Group also added, across all EU member countries, the reliance upon property for tax revenues is far less at around an average of just 4.1%.

Top 5 EU Member States

Country

Currency

Total Tax Revenue

Taxes On Property

Property Tax % Of Overall Tax

Luxembourg

Euro, Billions

24.91

2.42

9.7%

France

Euro, Billions

1,101.28

97.68

8.9%

Greece

Euro, Billions

72.56

5.86

8.1%

Belgium

Euro, Billions

203.03

16.35

8.1%

Spain

Euro, Billions

431.31

30.26

7.0%

Occupied retail, leisure and hospitality premises are receiving a business rates holiday during the current 2020/21 financial year with the Office for Budget Responsibility saying at the Spending Review last month that business rates receipts will rise by £12.8 billion next April across the whole of the UK through the end of that holiday.

Robert Hayton, Head of Property Tax at Altus Group, said “The unexpected cost of COVID might mean that the Chancellor has limited short term scope to meet his commitment to reduce the burden of tax on commercial property but that mustn’t also mean potential reforms are shelved. There are fiscally neutral, and blinding obvious, changes that could be made to property taxes that would increase fairness and pave the way for a better system in the future.”

In the summer, the Chancellor also introduced a stamp duty holiday meaning anyone buying a property below £500,000 in England won’t need to pay stamp duty until next April.

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