Banking sector contributes over a tenth of UK tax, study reveals

Those with private wealth may be interested to learn the tax contribution of the UK banking sector was £53.4 billion in the last financial year, according to the latest figures.

A study published by the City of London Corporation and produced by consultancy PwC showed tax payments by the financial services industry in the 12 months leading up to the end of March accounted for more than one-tenth of all Treasury receipts.

However, lower rates of corporation and employment tax meant the total was down by £8 billion on the previous year, the report stated.

City of London Corporation chairman Stuart Fraser said the results demonstrated the significance of the contribution made by the industry to government finances, but warned it should not be charged excessively.

"The industry has demonstrated resilience in these challenging global economic conditions but we must be wary of crossing a threshold when it comes to taxation," he commented.

He went on to argue that the 50 per cent tax rate and bank payroll tax are likely to increase payments by the UK banking sector in future, but these must be moderated to ensure it remains internationally competitive.

Despite this injection of cash into the Treasury, the National Audit Office claimed earlier this week the government will be providing support for the banking sector for "years to come".ADNFCR-2318-ID-800295729-ADNFCR