UK corporation tax receipts have risen by 9.05% in the past 12 months, despite a decrease of 1% in the headline rate of corporation tax to 19% from 1 April 2017. This is an increase of £4,577m, according to leading accounting, tax and advisory practice Blick Rothenberg.
Simon Wagman, a partner at the firm, said: “Despite the fact that headline corporation tax rates have decreased over recent years, the tax collected from corporation tax has continued to increase by some 25% over three years.”
He added: “Companies House statistics indicate that the number of incorporations in the UK continue to increase, with the total register at Companies House surpassing 4 million companies for the first time in the quarter to 31 March 2018.
“The data, however, also indicates the rate of incorporations has decreased with 2016 reaching the height. This increase in incorporations could in part explain the increase in tax, with the 2016 new incorporations paying corporation tax for the first time in 2017/18.”