Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Categorized | Financial

Financial services tax take drops

Posted on December 19, 2012

Corporation tax payments from the financial services sector fell by a quarter in 2011-12 to £5.4bn, as the tax rate fell and profitability was hit by the European debt crisis and provisions for mis-selling payment protection insurance.

The decline, which saw the sector paying less than half the £12.4bn it paid at the peak in 2008, made it the second largest payer of corporate tax behind the oil industry, according to an annual study published by the City of London Corporation.

    In a sign of the effects of recent changes to the tax system, the declining corporation tax payments were offset by increased payments of irrecoverable value added tax, national insurance and other indirect taxes, according to PwC, the consultancy that prepared the study.

    A total of £63bn of tax was borne and collected by the sector in 2011-12, unchanged from 2010-11. The sector’s share of the UK’s total tax take fell slightly from 12.1 per cent to 11.6 per cent.

    Mark Boleat, policy chairman at the City of London Corporation, said: “These figures demonstrate the significant contribution that the UK financial services industry continues to make in terms of taxes and jobs even in this difficult economic environment.”

    Payments by banks, which are the largest component of the financial services sector, fell particularly sharply from £3.5bn to £1.3bn in the year to 2012. A levy on bank balance sheets contributed £1.6bn but its full impact will only be apparent in next year’s figures.

    Employment in the sector remained constant from the previous financial year at 1.1m (3.8 per cent of the workforce), and accounted for £27.7bn, 11.8 per cent of total employment taxes.