Financial Services Net GBP 71.4 Billion in Tax
December 7, 2016 Taxation in UK
A new report prepared by the accounting firm PWC for the City of London has shown that the UK’s financial services sector pays approximately GBP 71.4 billion per year in taxes.
The total of the taxes paid accounts for nearly 11.5 percent of the country’s total tax receipts.
According to the head of financial services at PWC, Andrew Kail, the report highlights the increasing reliance of the UK on the tax revenues derived from banking and insurance businesses in the country.
The report also pointed out that the revenues currently being collected due to the financial service industry may be at risk in the face of Brexit.
As it is not yet clear what effect Brexit will have on the financial industry, as it is possible that the UK’s exit from the EU will heavily restrict the financial sector’s access to the EU single-market.
It is estimated that the financial services sector in the UK accounts for as much as 8 percent of the national Gross Value Added, and employs approximately 3.4 percent of the national workforce.