CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Falling Corporate Tax Receipts Dent UK Government's Finances

Falling Corporate Tax Receipts Dent UK Government's Finances

by Robert Lee, Tax-News.com, London

25 April 2007


Figures released by the UK's statistical office show that the country's public finances worsened in March 2007 after a considerable drop in corporate tax revenues compared with the same time last year.

According to the Office of National Statistics, corporation tax receipts were down 32% in March 2007 compared with March 2006, although the ONS said there were a number of "special factors" at play to cause the reduction. For example, the monthly profile of corporation tax payments made in 2006/07 by North Sea oil companies has been significantly affected by changes to the payment regime introduced in Budget 2005. As a result of this change, receipts in April 2006 and January 2007 are considerably lower than in the previous year, whereas receipts in July and October 2006 were slightly higher than last year.

In addition, the ONS said that there can be substantial differences between the total cash paid over by self assessment taxpayers in January before the month-end deadline, and amounts recorded as tax. This affects the difference between the public sector net cash requirement and public sector net borrowing as the former reflects amounts paid over while the latter only includes amounts recorded as tax.

Also, National Insurance rebates in respect of personal pensions were paid out much earlier in 2006/07 than 2005/06, the report noted.

The ONS said said that the public sector current budget was in deficit by GBP4.6 billion last month, a GBP1.5 billion higher deficit than in March 2006, when there was a deficit of GBP3.0 billion. Public sector net borrowing was GBP8.5 billion, GBP1.9 billion higher net borrowing than in March 2006.

The public sector net cash requirement was GBP17.2 billion, a GBP1.3 billion higher net cash requirement than in March 2006; at the end of March 2007 public sector net debt was GBP501.0 billion (equivalent to 37.4% of GDP). This compares to GBP463.4 billion (36.4%) as at the end of March 2006.

In financial year 2006/07: the public sector current budget was in deficit by GBP8.8 billion; this is a GBP6.5 billion lower deficit than in 2005/06, when there was a deficit of GBP15.3 billion; public sector net borrowing was GBP33.6 billion. This was a GBP4.4 billion lower net borrowing than in 2005/06, when there was net borrowing of GBP38.0 billion; the public sector net cash requirement was GBP35.1 billion; GBP4.9 billion lower net cash requirement when compared with 2005/06 when there was a net cash requirement of GBP40.0 billion.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »