New figures published show that the tax contribution of the UK banking sector climbed to £31.3 billion in 2014.
In a recent press release, the BBA comments on the latest figures, and forecasts the future tax position for the sector. Highlights and key statistics include:
- Total tax contribution of the UK banking sector in 2014 estimated as £31.3 billion.
- For the six main UK banks this represents a 55% rise between 2010 and 2014.
- £15.3 billion was paid by UK-headquartered banks and £16 billion by foreign headquartered banks.
- Corporation tax accounted for £1.6 billion in 2013/14 – with new data from HMRC showing it rose to £2.3 billion (up 44%) in 2014/15. This is expected to climb further in coming years.
- For the sector as a whole, irrecoverable VAT paid by banks now stands at £4 billion.
- The Bank Levy has jumped 85% since it was first introduced in January 2011, now accounting for £2.2 billion of total taxes paid by the sector.
- Following the 2015 Summer Budget, an additional 8% Bank Corporation Tax Surcharge will be payable, meaning the banking sector will pay Corporation Tax at a rate higher than other industries.