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Finance Business Service

The contribution of UK's largest taxpayers increased in 2016


Bridge UK

This year, the largest companies of Great Britain paid for taxes 82.3 billion pounds sterling (103.2 billion US dollars), in comparison with 2015, they paid 80.5 billion pounds sterling, despite reducing corporate tax rate, according to the report of PwC.

Tax deposits from 100 largest companies in Great Britain constituted 13,3 percent of the state receipts and it turned out 23.7 billion pounds sterling in a type of tax which become covered at the expense of companies and 58.6 billion pounds sterling of taxes which were collected by the entities on behalf of the government, such as the VAT and a tax which they created in 2016.

Taxes increased by 3.6 percent since 2015, due payments increasing of the corporate tax. PwC says, while the corporate tax is at the lowest level, elimination of a capability of banks to offset the losses or to make compensation payments for the purpose of the taxation, led to increase amount of the corporate tax.

Revenues from banking tax rose by 24.4 per cent in 2016, after the rate increase. The tax contribution from the financial sector, increased over the past six years, it currently accounts for 43 percent of the taxes collected from 100 companies. Also, the contribution of the oil and gas industry has decreased, generally because of drop in oil prices.

“The received results are a timely reminder on the cost of sector of financial services for the state treasury”, said Kevin Nicholson, head of the tax department at PwC.

Author: Sergey Panov

managing partner Finance Business Service

Сергей Панов
managing partner
Finance Business Service