Top level businesses deliver significant proportion of UK tax income

The financial services sector in the UK contributed over 12 per cent of the Government’s total tax income over the financial year, according to newly released figures.The report from the City of London Corporation found that the total tax contribution from banks and financial institutions grew to £63 billion at the tax year-end, compared to £53 billion the previous year.The analysis showed that financial services firms paid out an average of almost 20 per cent of their annual income on tax, the highest percentage since the survey began, and up from 15 per cent in 2007.This is still below what it was before the recession, but experts say it suggests that measures such as the one-off supertax on bankers’ bonuses, the 50 per cent tax rate and an increase in VAT, had all boosted the tax contribution.The Government has announced plans to ensure the UK moves away from its reliance on financial services to investment in manufacturing. However, experts have warned that this is not a quick-fix solution. Stuart Fraser, policy chairman at the City of London Corporation, told the Financial Times, “We’ve always been supportive of rebalancing. But we believe the way to get there is not by shrinking the financial services industry, but by building up other industries.”

http://www.50percenttax.co.uk/index/2011/12/29/top-level-businesses-deliver-significant-proportion-of-uk-ta.html