Largest companies pay £11bn in corporate tax

The largest companies within the UK are contributing £11bn of the total corporate tax take, according to a survey.

The 2008 Total Tax Survey, which is published by PricewaterhouseCoopers on behalf of the Hundred Group of Finance Directors, shows Britain’s largest companies paid almost a quarter of overall corporate tax receipts in the year to 31 March 2008.

Ashley Almanza, chairman of the Hundred Group of Finance Directors, said the survey findings illustrate the extent to which the largest companies support UK public finances.

In addition, he said The Hundred Group member companies provide a high proportion of skilled, high value jobs which attribute to the competitiveness of the UK economy.

'In this economic climate the tax burden on large companies needs to be well understood. Taxation levels have an important impact on our ability to compete in a fiercely competitive global economy.

'The ideal is to encourage economic activity and thereby grow overall tax revenues,' he said.

According to Susan Symons, tax partner at PwC, findings of the survey evidence the issue of improving competitiveness within the tax system.

"This data is valuable evidence in the debate on how to improve the competitiveness of the tax system.

'The drop in corporation tax paid by participants in this year’s survey highlights the sensitivity of corporation tax to competition and economic change,' she said.

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