THE TAX contribution from the UK financial services industry in the 2009/10 financial year fell by £8bn – down 13% from the previous financial year, according to a report by PwC for the City of London Corporation.
The financial services industry contributed an estimated £53.4bn to UK government taxes in the 2009/10 tax year, accounting for 11.2% of the total UK tax take, the research also found.
The fall in the City’s tax contribution was due to reduced levels of corporation and employment tax, the research said.
The figures do not include any receipts from the 50% top rate of income tax or the bank payroll tax, which although charged on 2009 bonuses was not paid until the subsequent year.
Stuart Fraser, policy chairman at the City of London Corporation, said: “At a time when the coalition government are making difficult decisions on expenditure, this report highlights the vital contribution made by the financial services industry to the Exchequer even as the effects of the crisis weighed on institutions across the City.”
The 50% income-tax rate, bank payroll tax and other reforms are likely to increase the amount of tax raised from the City over the next few years, he added.
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Government's estimate of a £400m admin saving from Making Tax Digital is way off - and is instead a huge cost burden, warns Lamont Pridmore chief executive Graham Lamont
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year