City of London Corporation: UK financial services sector maintains record tax contribution

07 January 2020

The twelfth edition of The City of London Corporation's annual Total Tax Contribution of UK Financial Services report, produced by PwC, analyses the taxes paid by the sector in the year to March 2019.

Despite considerable business uncertainty over the last year, the tax contribution made from the UK financial sector has remained broadly steady at an estimated £75.5bn – a small increase from last years’ £75bn. Reinforcing the importance of the sector to the UK’s economy, this represents 10.5% of all government receipts for all taxes – equivalent to nearly half of Government spending on health.

Employment taxes continue to be the largest component of the tax contribution, with taxes generated by banks particularly dependent on the location of their jobs. New data looking at challenger banks for the first time also highlights the role technology can play in supporting productivity.

Report: The total tax contribution of UK financial services in 2019

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