An assessment undertaken by the Organisation for Economic Co-operation and Development shows property taxes accounted for 12.7 per cent of the total tax burden in 2014, the latest data available – and this is the highest share in the developed world.
The figures, published in the Daily Telegraph, include purchase tax in the form of stamp duty, as well as commercial property taxation, insurance tax and capital gains.
It means levies on property as a share of total taxation are higher in the UK than anywhere else in the developed world. At 5.6 per cent, the average among the OECD’s 35 members is less than half the UK figure claims the Telegraph.
But since the survey was undertaken by the OECD, there have been substantial increases in the tax burden on the buy to let sector with the additional properties stamp duty surcharge, changes to Wear and Tear allowance, and the soon-to-be-introduced phased reduction on investors’ mortgage interest tax relief.
Property taxes now account for more than 10 per cent of total tax revenue in just four other countries apart from the UK: Australia, Canada, South Korea and the US.
In 2014, UK taxes on residential and commercial property, including stamp duty, inheritance tax and business rates, jumped to £74.2 billion, up from £69.8 billion a year earlier.
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