THE CONTRIBUTION to the Treasury by the UK’s largest companies has hit its highest ever level thanks to corporation tax cuts.
A survey of the 100 Group – a group of FTSE 100 firms and other large companies – released by PricewaterhouseCoopers today shows total tax contributions hit £80bn in the year to April.
Contributions include taxes on firms such as corporation tax and business rates as well as those collected by the company on behalf of the state such as income tax.
Corporation tax figures, excluding oil and gas firms, rose 6.7 per cent in the year to April. Corporation tax rates stand at 21 per cent, but were 28 per cent in 2010.
“Today’s figures show that government action to make the UK’s tax regime the most competitive in the G20 is paying off,” said David Gauke, financial secretary to the Treasury. “By reducing corporation tax, we have given businesses the opportunity to grow, take on more staff, and help get the economy on the road to recovery.”