How does the UK raise its taxes? How does the UK spend its tax revenue? Which taxes raise the most revenue?

This is a freeview 'At a glance' guide to how taxes are raised and spent. 

Tax yield by tax

This table has been compiled from data supplied by HMRC and the Office of National Statistics. 

Financial Year

2023-24

£m

%

2022-23

£m

%

2021-22

£m

%

2020-21

£m

%

2019-20

£m

%
Income Tax (IT) 275,676 31.6% 248,358  29.9%  220,612 29.2% 193,742  31.2% 193,243 28.9%
PAYE Income Tax (included in IT) 237,272   210,288   188,252   166,820   164,841  
SA Income Tax (included in IT) 42,677   42,939   37,029   31,186   32,185  
National Insurance Contributions 179,190 20.5% 177,437 21.4% 158,043 20.9% 143,460 23.1%  142,871 21.4% 
Capital Gains Tax 14,493 1.7% 16,929 2.0%  15,263 2.0% 11,131 1.8%  9,826 1.5%
Apprenticeship Levy 3,841 0.4% 3,580 0.4% 3,213 0.4% 2,910 0.5%  2,798 0.4%
Value Added Tax 168,866 19.3% 159,748 19.2% 157,546 20.8% 101,650 16.4% 129,885 19.4%
Corporation Tax (CT) 85,282 9.8% 77,832 9.4% 63,724 8.4% 50,486 8.1% 61,106 9.1%
Offshore (included in CT) 2,951   6,613   1,996   498   1,274  
Bank Levy 1,428 0.2% 1,332 0.2% 1,469 0.2% 2,343 0.4% 2,472 0.4%
Bank Surcharge 1,461 0.2% 2,569 0.3% 2,352 0.3% 1,420 0.2% 1,978 0.3%
Diverted Profits Tax 108 0.0% 42 0.0% 220 0.0% 140 0.0% 5 0.0%
Digital Services Tax 678 0.1% 567 0.1% 380 0.1% - 0.0% - 0.0%
Residential Property Developer Tax 103 0.0% 157 0.0% - 0.0% - 0.0% - 0.0%
Energy Profits Levy 3,587 0.4% 2,632 0.3% - 0.0% - 0.0% - 0.0%
Electricity Generators Levy 1,473 0.2% - 0.0% - 0.0% - 0.0% - 0.0%
Economic Crime Levy 13 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Petroleum Revenue Tax -428 0.0% -234 0.0% -552 -0.1% -241 0.0% -408 -0.1%
Hydrocarbon Oil (Fuel duties) 24,828 2.8% 25,100 3.0% 25,943 3.4% 20,932 3.4% 27,573 4.1%
Inheritance Tax 7,499 0.9%

7,087

0.9% 6,054 0.8% 5,326 0.9% 5,122 0.8%
Stamp Duty (shares) 3,199 0.4% 3,782 0.5% 4,369 0.6% 3,678 0.6% 3,619 0.5%
Stamp Duty Land Tax 11,614 1.3% 15,359 1.8% 14,098 1.9% 8,668 1.4% 11,601 1.7%
Annual Tax on Enveloped Dwellings 132 0.0% 124 0.0% 119 0.0% 111 0.0% 128 0.0%
Tobacco duties 8,804 1.0% 10,004 1.2% 10,278 1.4% 9,964 1.6% 8,804 1.3%
Spirits duties 4,137 0.5% 4,136 0.5% 4,401 0.6% 4,115 0.7% 3,825 0.6%
Beer duties 3,621 0.4% 3,680 0.4% 3,747 0.5% 3,084 0.5% 3,446 0.5%
Wines duties 4,611 0.5% 4,391 0.5% 4,734 0.6% 4,659 0.7% 4,296 0.6%
Cider duties 220 0.0% 236 0.0% 234 0.0% 248 0.0% 270 0.0%
Betting & Gaming 3,389 0.4% 3,303 0.4% 3,074 0.4% 2,837 0.5% 3,019 0.5%
Air Passenger Duty 3,845 0.4% 3,181 0.4% 1,015 0.1% 585 0.1% 3,641 0.5%
Insurance Premium Tax 8,146 0.9% 7,341 0.9% 6,627 0.9% 6,307 1.0% 6,415 1.0%
Landfill Tax 489 0.1% 626 0.1% 667 0.1% 566 0.1% 641 0.1%
Climate Change Levy 1,827 0.2% 2,094 0.3% 1,930 0.3% 1,778 0.3% 2,004 0.3%
Aggregates Levy 350 0.0% 378 0.0% 410 0.1% 359 0.1% 397 0.1%
Soft Drinks Industry Levy 338 0.0% 355 0.0% 334 0.0% 299 0.0% 337 0.1%
Plastic Packaging Tax 270 0.0% 200 0.0% - 0.0% - 0.0% - 0.0%
Swiss Capital Tax - 0.0% - 0.0% - 0.0% -1 0.0%  - 0.0%
Customs Duties 4,804 0.5% 5,526 0.7% 4,791 0.6% 2,962 0.5% 3,287 0.5%
Penalties 1,168 0.1% 763 0.1% 586 0.1% 445 0.1% 641 0.1%

Collected by HMRC

829,061   788,615   715,681  

583,963

 

632,842

 
Council tax 44,489 5.1% 41,967 5.1% 39,970  5.3%  37,577 6.0% 36,241 5.4%
Business rates * ? ?  ?  ? ? ?  ?
Total taxes 873,550 100%  830,582 100% 755,651  100%  621,540 100% 669,083  100%

 

*Business rates gross about £25,100m (2023-24). These are only paid by businesses with business premises that do not currently qualify for small business rate relief and therefore if included in the above totals, they would account for roughly 2.8% of tax revenue. 

 

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