UK corporate tax receipts pass £100bn

UK corporate tax receipts passed £100bn in the latest financial year as higher onshore Corporation Tax and stronger financial-sector payments outweighed falling revenue from energy-related levies.

New annual statistics from HM Revenue & Customs show receipts across Corporation Tax and associated corporate taxes reached £100.4bn in 2025/26, an increase of £3.5bn, or 4%, from the previous year.

The total covers onshore and offshore Corporation Tax alongside the Bank Levy, Bank Surcharge, Residential Property Developer Tax, Energy Profits Levy, and Electricity Generator Levy.

Onshore Corporation Tax generated £92.9bn, up £3.9bn, or 4%, while offshore receipts increased 13% to £2.2bn.

The financial and insurance sector made the largest contribution to standard Corporation Tax receipts, generating £25.3bn during the year. That represented 27% of the total and an increase of £3.6bn, or 17%, from 2024/25.

Wholesale and retail businesses were the second-largest sector at £9.5bn, although their receipts fell by £0.6bn, or 6%. Professional, scientific, and technical activities contributed £8.6bn.

Bank Surcharge receipts increased 20% to £1.2bn, which HMRC said could largely be explained by stronger UK banking-sector profitability. Bank Levy receipts rose 9% to £1.4bn.

The picture was markedly different for energy taxation. Energy Profits Levy receipts declined 10% to £2.6bn as lower oil and gas prices reduced the amount collected.

Electricity Generator Levy receipts fell 95% to £41m from the previous year as lower wholesale electricity prices reduced the exceptional revenues subject to the charge.

The statistics also show how concentrated Corporation Tax liabilities are among a comparatively small group of companies.

HMRC estimates that around 7,670 companies with liabilities above £1m accounted for £52.7bn, or 60%, of total Corporation Tax liabilities for 2024/25.

Those companies represented only 0.5% of businesses with tax to pay.

By comparison, approximately 1.1 million companies had liabilities below £10,000. They represented 66% of companies with an amount to pay but generated £3.4bn, equivalent to 4% of total liabilities.

The distribution explains why changes affecting large-company profits, investment, or tax rates can have an outsized effect on overall receipts even though most companies pay comparatively small absolute amounts.

Total Corporation Tax liabilities reached £87.9bn in 2024/25, up £4.5bn, or 5%, from the previous year.

HMRC attributed much of that increase to the full effect of the 25% main Corporation Tax rate despite a slight fall in profits chargeable to tax.

The main rate increased from 19% to 25% in April 2023 for companies with profits above the relevant threshold, with marginal relief applying between the small-profits and main-rate bands.

Because companies have different accounting periods, the first year after a rate change can include businesses only partially exposed to the new rate. By 2024/25, the 25% rate applied throughout the accounting period for businesses falling within its scope.

The result can be seen in the distribution of tax chargeable. Corporation Tax charged at the 19% rate fell from £23.1bn to £2.9bn, while tax charged at the 25% main rate rose 42% from £54.6bn to £77.5bn.

Tax charged through the tapered rate increased 59% to £9bn.

HMRC’s figures also provide a view of business investment reliefs. Total capital allowance claims, after balancing charges, were £155bn in 2024/25, down £11bn, or 7%, on the previous year’s revised figure.

Annual Investment Allowance claims rose 17% to £25.1bn, while total qualifying capital expenditure increased 3% to £192.3bn.

Capital allowance use is also highly concentrated. Around 370 companies accounted for £74.3bn, or 48%, of total claims, according to HMRC.

Receipts and liabilities measure different things and cover different periods. Receipts record cash received by the Exchequer, while liabilities are derived from company tax returns and can be revised as amended and late returns arrive.

The figures should not be treated as a simple measure of company profitability either. Tax rates, allowances, losses, sector composition, commodity prices, and payment timing can all alter receipts independently of underlying economic growth.

The latest release nevertheless shows the scale of the shift since the higher main rate became fully embedded. Corporate tax receipts have moved above £100bn, financial services have become an even larger contributor, and a relatively small population of large taxpayers continues to account for most Corporation Tax liabilities.