Self-assessment receipts and CGT rake it in for the Treasury

Official figures from the Office for National Statistics (ONS) show that the UK’s public debt surplus was at its highest ever level in January, and this was driven by a £1.9 billion increase in self-assessment receipts and a £1.2 billion rise in Capital Gains Tax (CGT).

According to the ONS, income from taxes outstripped public spending by £14.9 billion, giving the Government its largest January surplus since records began in 1993. Combined, self-assessment receipts and CGT came to £21.4 billion in January, which was £3.1 billion more than the same month the year before.

High tax receipts were common in January, as this is when personal tax needs to be paid. However, the surplus was larger than expected, exceeding the £9.3 billion raked in last year and the £10 billion forecast by analysts.

While the figures are not necessarily a sign of a strengthening of the economy, as they relate to the 2017/18 tax year, they do mean that public sector borrowing is likely to be below the full-year Budget forecast made by the Office for Budget Responsibility (OBR).

This will give Chancellor Philip Hammond an estimated £2 billion of ‘fiscal headroom’ to draw on to stimulate the economy should he need to, depending on the Brexit outcome.

However, the ONS also reported that public sector net debt increased by £26.9 billion to £1.6 trillion in January, which is equal to 74 per cent of gross domestic product (GDP).

Loading Quotes...

Latest News

Be prepared for changes to VAT penalties and VAT interest charges

Changes to charges and penalties applied to late submission of VAT returns will …
Read more…

Penalties for misuse of Coronavirus Job Retention Scheme

New legislation allows HM Revenue & Customs (HMRC) to recover Coronavirus …
Read more…

Don’t pay more tax
than you need to

Register for our newswire

Our regular Newswire mailings are designed to keep you up to date with the latest industry news and events.

Register here

Client Login
Complete our Client
Satisfaction Survey

Spring Statement 2022

Exactly two years since the first lockdown was announced, the eyes of the public were firmly...

Read full our summary