HMRC’s latest set of corporation tax statistics show receipts of £55.1bn for 2018/19, an increase of 2% on 2017/18. This set of figures includes corporation tax, bank levy and bank surcharge receipts for the financial year ended 31 March 2019 and the first published corporation tax liability estimates for company accounting periods ended in 2017/18.
The commentary highlights recent policy changes that could affect the figures. Receipts continue to rise despite the decrease in the rate of corporation tax from 20% to 19% from 1 April 2017.
The largest companies pay the most corporation tax with liabilities for 2017/18 totalling £30.9bn, up from £26bn in 2016/17. Although this group represents less than 0.3% of all companies, it was responsible for nearly 56% of all corporation tax in 2017/18. Recent policy changes that will have affected the largest companies include the corporate interest restriction and the loss relief restriction, both of which apply from 2017/18.
The finance and insurance sector delivered the biggest sectoral increase with liabilities of £14.1bn in 2017/18 up from £12.4bn in 2016/17. In addition to the policy changes above, banks have been liable for the 8% surcharge since 1 January 2016 and have been subject to loss restriction rules since 1 April 2016.
Capital allowances claims are also increasing. Over the six years to 2017/18, claims have increased by 36%, from £72bn in 2012/13 to £97bn in 2017/18. This is despite a £3bn decrease between 2015/16 and 2016/17 when the annual investment allowance threshold dropped to £200,000. The statistics do not yet include the cost of the new structures and buildings allowance introduced for expenditure from 29 October 2018.
HMRC’s latest set of corporation tax statistics show receipts of £55.1bn for 2018/19, an increase of 2% on 2017/18. This set of figures includes corporation tax, bank levy and bank surcharge receipts for the financial year ended 31 March 2019 and the first published corporation tax liability estimates for company accounting periods ended in 2017/18.
The commentary highlights recent policy changes that could affect the figures. Receipts continue to rise despite the decrease in the rate of corporation tax from 20% to 19% from 1 April 2017.
The largest companies pay the most corporation tax with liabilities for 2017/18 totalling £30.9bn, up from £26bn in 2016/17. Although this group represents less than 0.3% of all companies, it was responsible for nearly 56% of all corporation tax in 2017/18. Recent policy changes that will have affected the largest companies include the corporate interest restriction and the loss relief restriction, both of which apply from 2017/18.
The finance and insurance sector delivered the biggest sectoral increase with liabilities of £14.1bn in 2017/18 up from £12.4bn in 2016/17. In addition to the policy changes above, banks have been liable for the 8% surcharge since 1 January 2016 and have been subject to loss restriction rules since 1 April 2016.
Capital allowances claims are also increasing. Over the six years to 2017/18, claims have increased by 36%, from £72bn in 2012/13 to £97bn in 2017/18. This is despite a £3bn decrease between 2015/16 and 2016/17 when the annual investment allowance threshold dropped to £200,000. The statistics do not yet include the cost of the new structures and buildings allowance introduced for expenditure from 29 October 2018.
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