This is how much banks paid in UK taxes this year

• The banking sector contributed £35.4 billion in UK taxes in 2016/17, according to analysis by PwC.
• Almost half of banks' profits were paid in taxes.
• Analysts say a final Brexit deal must take into account how integral the banking sector is to the UK economy.
  

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LONDON – The banking sector contributed £35.4 billion to the public purse in 2016/17, up from £34.2 billion last year, according to a report commissioned by UK Finance and based on auditor PwC's analysis of 36 banks.

Overall, 47.6% of the surveyed banks' profits were paid in taxes. Taxes collected were boosted by the introduction in 2016 of the banking surcharge, as well as an increase in corporation tax resulting from increased profitability, loss relief and compensation payment restrictions.

"This report shows that the banking sector makes a significant contribution to the UK's public finances. Tax contributions have recovered consistently since the financial crisis," said Andrew Packman, tax transparency partner at PwC.

"While the sector is in a strong position to face future challenges, this report underlines the importance of the banking sector and the need to ensure that the UK retains its strong position as a leading financial centre," he said.

In order for London to remain one of the "most important and attractive international centres for banking and global business," said PwC capital markets leader Isabelle Jenkins, the UK's banking sector must "look further afield than the City's Square Mile," to "nationwide" talent.

Keep scrolling for the report's ten key statistics:

Banks contributed £35.4 billion in tax in 2016/17, up from £34.2 billion in 2015/16. Taxes borne — those at a direct cost to the company — accounted for £19 billion of the total, while taxes collected made up £16.4 billion.

Of the £35.4 billion, £18.1 billion was paid by UK banks and £17.3 billion by foreign banks.

The banking surcharge, introduced in January 2016 at 8% of taxable profits, generated £1.1 billion in payments. Receipts of corporation tax, the bank levy and the surcharge — £8.9 billion combined — were 22% higher than corporation tax receipts before the financial crisis.

 

 

 

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