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- Brexit, COVID-19 cast shadow over UK tax take from finance
Brexit, COVID-19 cast shadow over UK tax take from finance
Reuters reports that according to two reports issued on Wednesday, Britain's tax receipts from its huge financial services sector are set to fall from this year as the City of London loses business to the European Union and fallout from the coronavirus pandemic continues.
The City of London Corporation, which administers the capital's financial district, said the tax contribution of 75.6 billion pounds in the year to March 2020 was little changed from 75.5 billion pounds in the prior period, despite uncertainties over Britain's future relations with the European Union.
"However, the future is uncertain, and we do not yet know the long-term impacts of the pandemic, Brexit and changes in ways of working," City leader Catherine McGuinness said.
The 135 billion pound financial sector accounts for more than 10% of UK tax receipts.
Receipts are expected to ease in the current financial year that ends next month to between 71.1 billion and 75.7 billion, consultants PwC estimated in a report for the City.
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