The UK's banks now account for one eighth of the corporation tax collected by the Treasury, according to new figures produced by UK Finance. The amount collected from banks in 2017-18 was £36.7 billion, up 13.6% year-on-year. This equated to 5.4% of UK tax revenues and means that 50.4% of bank profits end up being collected in tax.
As a result, London-based banks pay much more than those in the world's other major financial centres. By comparison, the total tax rate is 43.8% in Frankfurt, 34.2% in New York, 23.2% in Singapore and 22.7% in Dubai.
Chief Executive of UK Finance Stephen Jones said, "The banking industry’s contribution to the public finances continues to grow each year, with £1 in £8 of all UK corporation tax now paid by the sector. This underlines the need to ensure the UK remains a world-leading location for financial services investment in future, safeguarding the jobs and tax revenue generated by the industry."