A new report published by the City of London Corporation today (10 February), shows that the UK’s financial services sector contributed a record £75.6bn in tax in the year to March 2020 – a period covering significant uncertainty about the UK’s relationship with the European Union. This contribution remained stable compared to the previous year’s figure of £75.5bn.
The sum, which amounts to over 10 per cent of the overall government tax receipts, comprises £34.1bn in taxes borne directly by firms and of £41.5bn in taxes collected from financial services employees and customers.
Despite the economic impact of the COVID-19 pandemic, the sector’s total tax contribution is expected to remain robust according to the projections made in the report. It estimates that in the current financial year ending in March 2021, the sector will pay between £71.1bn and £75.7bn in taxes.