Accredited official statistics

Corporation Tax statistics commentary 2024

Published 26 September 2024

£93.3 billion total receipts from all Corporate Taxes for 2023 to 2024, up from £84.5 billion in the previous year

£81.5 billion total liabilities for all Corporate Taxes for 2022 to 2023, up from £66.1 billion in the previous year

1. About this release

This annual publication provides a breakdown of receipts and liabilities from Corporate Taxes by number of companies, income, deductions, industry sector, company size and financial year. For the purposes of this publication, Corporate Taxes consist of:

• Corporation Tax (CT) including onshore and offshore
• Bank Levy
• Bank Surcharge
• Residential Property Developer Tax (RPDT)
• Energy Profits Levy (EPL)
• Electricity Generator Levy (EGL)

The publication includes receipts figures up to financial year 1 April 2023 to 31 March 2024, and the first published CT liability estimates for company accounting periods ending between 1 April 2022 to 31 March 2023.

2. Headline findings

The key findings in this year’s publication are that:

• total Corporate Tax receipts increased by £8.8 billion (10%) in financial year 2023 to 2024
• the increase in total Corporate Tax receipts was mainly due to the increase in the Corporation Tax main rate to 25%, and the introduction of the EGL, but was partially offset by lower offshore CT receipts
• Financial and Insurance (excluding Bank Levy and Bank Surcharge) was the largest contributing sector to CT receipts in financial year 2023 to 2024, accounting for £20.2 billion or 24% of the total
• the £11.3 billion (18%) growth in total onshore and offshore CT liabilities in financial year 2022 to 2023, was driven by continued growth in trading profits
• in financial year 2022 to 2023, approximately 6,000 companies (0.4% of all companies who had an amount of tax to pay) contributed 60%, or £44.7 billion, of total CT liabilities

3. Receipts from all Corporate Taxes

Figure 1: Receipts from all Corporate Taxes between financial year 2018 to 2019 and 2023 to 2024

The data underpinning figure 1 is within table 1A of the Corporation Tax statistics data tables 2024.

Key statistics to note from figure 1 include:

• total receipts from all Corporate Taxes increased significantly in financial year 2023 to 2024 to £93.3 billion, an increase of £8.8 billion (10%) on the previous year, continuing the post-pandemic trend seen since 2020 to 2021
• the year-on-year increase in receipts can largely be explained by a sharp rise in onshore CT receipts, driven by the increase in the main rate of CT from 19% to 25% from April 2023
• onshore Corporation Tax receipts totalled £82.3 billion in financial year 2023 to 2024, an increase of £11.1 billion (16%) on the previous year
• offshore Corporation Tax receipts were £3 billion in financial year 2023 to 2024, an annual decrease of £3.6 billion (55%), which can be explained by lower oil and gas prices than in their peaks in the previous year
• Bank Surcharge receipts decreased by £1.1 billion in financial year 2023 to 2024 largely due to the reduction in the Bank Surcharge rate from 8% to 3% from April 2023, while Bank Levy receipts increased slightly by £96 million
• Residential Property Developer Tax receipts totalled £103 million in financial year 2023 to 2024, a decrease of £54 million (34%) on the previous year
• receipts from the Energy Profits Levy were £3.6 billion in financial year 2023 to 2024, an increase of just under £1 billion (36%) on the previous year
• the Electricity Generator Levy was introduced in January 2023 and receipts, first paid in financial year 2023 to 2024, totalled £1.5 billion

4. Receipts from Corporation Tax by Standard Industrial Classification of economic activity (SIC)

Figure 2: Receipts from Corporation Tax by SIC section, financial year 2023 to 2024

The data underpinning figure 2 is within table 1B of the Corporation Tax statistics data tables 2024.

This is a new and experimental time series of the statistics and further detail can be found in the background and guidance to interpreting the Corporation Tax statistics 2024.

Data in table 1B of the Corporation Tax statistics data tables 2024 is presented for the period between financial year 2018 to 2019 and 2023 to 2024.

Please contact the team if you have any comments or feedback. Contact details are available on the landing page for this statistical publication.

Key statistics to note are that:

• Financial and Insurance is the largest contributing SIC section with receipts of £20.2 billion, accounting for nearly a quarter of total CT receipts in financial year 2023 to 2024
• Wholesale and Retail Trade was the second largest contributor, with £8.9 billion or 10% of total receipts in financial year 2023 to 2024
• Professional, Scientific and Technical activities was the third largest contributor, with £7.1 billion or 8% of total receipts in financial year 2023 to 2024

Figure 3: Growth in amount of CT receipts by SIC section, between financial years 2022 to 2023 and 2023 to 2024

The data underpinning figure 3 is within table 1B of the Corporation Tax statistics data tables 2024.

The main points to note in figure 3 are that:

• of the 21 industry sectors, 17 saw a year-on-year increase in CT receipts, with only 4 experiencing a year-on-year decrease
• the largest increase in total CT receipts was in Financial and Insurance, which saw a £4.4 billion or 28% increase
• the largest year-on-year decrease in CT receipts was in Mining and Quarrying where receipts decreased by £3.2 billion or 39%, with lower oil and gas prices being the main contributing factor

Figure 4 below shows the longer-term trends in CT receipts for some of the highest contributing SIC sections, between financial year 2018 to 2019 and 2023 to 2024.

Figure 4: Growth of CT receipts by SIC section between financial 2018 to 2019 and 2023 to 2024

The data underpinning figure 4 is within table 1B of the Corporation Tax statistics data tables 2024.

The main points to note in figure 4 are that:

• receipts from Mining and Quarrying were the most volatile over the last six years, increasing sharply between financial year 2020 to 2021 and 2022 to 2023 before falling in the latest year
• CT receipts from Finance and Insurance increased the most in value over the six-year period, growing by £9.8 billion (94%) between financial year 2018 to 2019 and 2023 to 2024
• the 196% increase in Electricity, Gas, Steam and Air Conditioning receipts between 2021 to 2022 and 2023 to 2024, was driven by the rise in energy prices during this period
• the similar trends in Manufacturing; Wholesale and Retail Trade; and Admin and Support Services SIC sectors mirror the recent growth of total CT receipts, to amounts significantly higher than the pre-pandemic levels of financial year 2019 to 2020

5. Explaining the recent growth in Corporation Tax liabilities

Figure 5: Changes in profits chargeable drive the changes in CT liabilities

Total amount of Corporation Tax liabilities and profits chargeable to Corporation Tax, between financial year 2017 to 2018 and 2022 to 2023

The data underpinning figure 5 is within table 3A of the Corporation Tax statistics data tables 2024.

The main points to note in figure 5 are that:

• the strong growth in CT liabilities seen in financial year 2021 to 2022, continued in 2022 to 2023
• CT liabilities increased by £11.3 billion (18%) in the latest financial year, from £63.1 billion in financial year 2021 to 2022, to £74.4 billion in 2022 to 2023
• the significant, recent growth in CT liabilities mean they are now approximately £22 billion or 42% higher than before the COVID-19 pandemic in financial year 2019 to 2020
• given CT is a profits-based tax, the trend in profits chargeable to CT mirrors that of CT liabilities; changes in profits chargeable drive the changes in CT liabilities

To help analyse and explain the changes in profits chargeable to CT, figure 6 below shows the year-on-year changes of its 2 main components - total taxable income and total deductions - over the last 4 years. A year-on-year increase in total deductions is displayed as a negative value representing its impact on profits chargeable to CT. A decrease in total deductions is displayed as a positive value for the same reason.

Figure 6: Total taxable income is the main driver of change in profits chargeable to CT

Year-on-Year changes in total taxable income, total deductions and profits chargeable to CT, between financial year 2018 to 2019 and 2022 to 2023

The data underpinning figure 6 is within table 3A of the Corporation Tax statistics data tables 2024.

The chart establishes that total taxable income is the main driver of change in profits chargeable to CT. It indicates that the substantial growth in profits chargeable to CT in the last 2 financial years was driven by total taxable income increasing by approximately £80 billion, or 15%, in both financial year 2021 to 2022 and 2022 to 2023.

To determine the reason for growth in total taxable income, figure 7 below examines total taxable income in more detail. It shows the change in trading profits, gross chargeable gains, other taxable income and total taxable income over the last 4 years.

Figure 7: Trading profits is the main driver of change in total taxable income

Year-on-year changes in trading profits, gross chargeable gains, other taxable income and total taxable income, between financial year 2018 to 2019 and 2022 to 2023

The data underpinning figure 7 is within table 3A of the Corporation Tax statistics data tables 2024.

Figure 7 confirms that the main driver of change in total taxable income is trading profits. The other types of taxable income have a much smaller impact, complementing or moderating the trend in trading profits, rather than being the main cause of a change in total taxable income.

The analysis above indicates that large growth in trading profits has been the main driver of the recent growth in CT liabilities. The 25% increase in CT in financial year 2021 to 2022 was driven by a 25% increase in trading profits. The 18% increase in 2022 to 2023 was driven by a more modest increase in trading profit of 15% but was accompanied by a 20% increase in other taxable income, such as bank, building society or other interest, and profits from non-trading loan relationships.

6. Corporation Tax liabilities by ‘size’ of company

Figure 8 below groups CT liabilities for the financial year 2022 to 2023 into the following bands: above £0 to £9,999; £10,000 to £49,999; £50,000 to £999,999; and above £1 million. It shows the number of companies and the total liability in each band.

The figure illustrates how the majority of CT liabilities are accrued from a relatively small number of companies.

In financial year 2022 to 2023, approximately 6,000 companies (0.4% of all companies who had an amount of tax to pay) had liabilities over £1 million, yet these contributed 60%, or £44.7 billion, of total CT liabilities.

In contrast, approximately 1 million companies (65% of all companies who had an amount of tax to pay) had liabilities of less than £10,000 and these contributed just 4%, or £3.2 billion, of the CT liability total.

Figure 8: Number of companies and their CT liabilities by liability band, financial year 2022 to 2023

The data underpinning figure 8 is within tables 10A and B of the Corporation Tax statistics data tables 2024.

Figure 9 below shows the longer-term trend in total CT liability by band from financial year 2017 to 2018 to financial year 2022 to 2023.

Figure 9: CT liabilities by liability band, between financial year 2017 to 2018 and 2022 to 2023

The data underpinning figure 9 is within table 10A of the Corporation Tax statistics data tables 2024.

The main points to note in figure 9 are that:

• the growth in CT liabilities over the last two financial years has been mainly driven by companies paying over £1 million
• total CT liabilities from companies paying over £1 million have increased by 73% between financial year 2020 to 2021 and 2022 to 2023, from £25.8 billion in 2020 to 2021 to £44.7 billion in 2022 to 2023
• in contrast, total liabilities from companies paying less than £10 thousand decreased by 6% between financial year 2020 to 2021 and 2022 to 2023, from £3.5 billion in 2020 to 2021 to £3.2 billion in 2022 to 2023
• CT liabilities from companies paying over £1 million, saw the largest percentage decrease during the COVID-19 affected financial year of 2020 to 2021, with a 10% reduction. This compared to a decrease in total CT, across all bands, of just 4% in this year

Additional analysis of data in tables 10A and B of the Corporation Tax statistics data tables for financial years 2021 to 2022 and 2022 to 2023, indicates that the percentage change in CT liabilities within the bands shown in figure 9, closely mirrors the percentage change in number of companies within each band, over the same period. The exception is for those companies paying over £1 million in 2022 to 2023; an 8% increase in the number of companies was accompanied by a 28% increase in CT liabilities.

7. Capital allowances claimed against profits

Capital allowances are a type of tax relief for businesses for qualifying capital expenditure. They allow a company to deduct some or all of the value of an item from their profits before they pay tax.

Figure 10 below shows the value of capital allowances from financial year 2017 to 2018 to financial year 2022 to 2023, by type of allowance.

Figure 10: Value of capital allowance claims minus balancing charges between financial year 2017 to 2018 and 2022 to 2023

The data underpinning figure 10 can be found in table 12A of the Corporation Tax statistics data tables 2024.

The main points to note in figure 10 are that:

• total capital allowances claims minus balancing charges, were £155.3 billion in financial year 2022 to 2023, an increase of over £24.2 billion (18%) on the previous year
• capital allowances claims in financial year 2022 to 2023 were £48.9 billion, or 46%, higher than the pre-pandemic levels of 2019 to 2020
• the increase in total capital allowances claims between financial year 2019 to 2020 and financial year 2022 to 2023, was largely driven by the introduction of the super-deduction, which enables companies to claim 130% capital allowances on qualifying plant and machinery investments
• the £5.4 billion, or 32% decrease in Annual Investment Allowance (AIA) claims in financial year 2022 to 2023 was mainly due to companies utilising the super-deduction for eligible expenditure instead of the AIA

Analysis of data in tables 13A and 13B of the Corporation Tax statistics data tables 2024, shows that 44% (£67.7 billion) of total capital allowances claims in financial year 2022 to 2023, were made by approximately 345 companies, or just 0.03% of the total number of companies who made a capital allowances claim.

8. Capital allowances qualifying expenditure

Companies are required to record the total amount of qualifying expenditure incurred in the accounting period.

Figure 11 below shows the total amount of qualifying expenditure from financial year 2017 to 2018 to financial year 2022 to 2023, by type of expenditure.

Figure 11: Amount of capital allowances qualifying expenditure between financial year 2017 to 2018 and 2022 to 2023

The data underpinning figure 11 can be found in table 14A of the Corporation Tax statistics data tables 2024.

The main points to note in figure 11 are that:

• total qualifying expenditure increased significantly in the latest two reporting years, rising from £122.6 billion in financial year 2020 to 2021 to £154.7 billion in financial year 2022 to 2023; this represents an increase of 26%
• the largest growth in qualifying expenditure was in machinery and plant on which first year allowance is claimed, increasing from £4.2 billion in financial year 2020 to 2021 to £66.8 billion in financial year 2022 to 2023
• the recent increase in first year allowance qualifying expenditure is largely due to the introduction of the super-deduction in April 2021
• total qualifying expenditure in 2022 to 2023 has now risen to above the pre-COVID amount in financial year 2019 to 2020

Comparison of qualifying expenditure in CT returns with ONS published numbers

The Office for National Statistics (ONS) also publishes data on business investment, which differs in definition from the CT capital allowances qualifying expenditure presented in this publication.

To help explain the key differences between the 2 sets of estimates, analysts in HMRC and the ONS have worked together to compare the totals of plant and machinery qualifying expenditure from HMRC CT returns, with ONS business investment data from the categories: transport equipment; and Information and Communication Technology (ICT) equipment and other machinery and equipment.

Figure 12 below shows the comparison of these 2 estimates between financial year 2017 to 2018 to financial year 2022 to 2023.

Figure 12: Comparison of ONS business investment estimates with HMRC qualifying expenditure estimates between financial year 2017 to 2018 and 2022 to 2023

The chart shows that business expenditure as defined by ONS is consistently around half the value reported by HMRC using data collected from CT returns.

The main reasons for the differences between the estimates are that:

• ONS business investment figures are published net of disposals, whereas HMRC qualifying expenditure estimates are not
• purchases relating to internal, integral parts of buildings such as lifts, are present in the HMRC figures but not present in the ONS figures
• HMRC figures contain certain software purchases, which are not included in the ONS estimates
• investment by foreign branches of UK companies is not in scope for ONS business investment figures, but is included in the HMRC data
• HMRC totals include some industry sectors which are excluded from the ONS estimates

9. Publication information

This is an annual publication published on 26 September 2024. The next release is scheduled for autumn 2025.

For press queries, please contact:

HMRC Press Office
Telephone: 03000 585 018

For statistical queries or feedback on this publication, please contact:

D Pritchard on CT receipts or M Dickson on CT liabilities
[email protected]