In advance of the UK’s ‘emergency’ or ‘summer’ Budget on Wednesday, which may announce changes to tax, the economy, pensions, business and benefits, here is a breakdown of current taxes.
The Treasury got most of its £514bn last year from income tax - £163.1bn (32%)
VAT brought in £111.4bn and National Insurance contributions amounted to £110.4bn. Both comprised 22% each.
Corporation tax contribution was £42.1bn (8%) and £27.2bn was raised by fuel duty.
Wedged between was tax on a variety of items which together accounted for £60.3bn, as compiled by accountancy firm Smith & Williamson. This represents 17%
The most significant of these was property stamp duty which raised £10.7bn. After that was alcohol duty at £10.5bn, followed by tobacco duty at £9.5bn.
Capital gains tax accounted for £5.6bn, inheritance tax £3.8bn, and air passenger duty £3.2bn.
Other items in the mix, smaller but still worth at least £2bn or £3bn, include betting and gaming tax, insurance premium tax, bank levy, customs, shares and climate change levy.
Speculation is rife about what the Chancellor will announce on Wednesday. The Conservatives have said they will not increase income tax, NI contributions and VAT. But they have also promised to find ways to cut billions, so it is likely other taxes will rise to reduce the country’s deficit.
Hikes in tax on some of the ‘smaller’ items may prove one way for the Chancellor to raise more money.
